Forklift battery manufacturer EnerSys has agreed to buy the assets of its Chinese supplier for sealed lead acid batteries.

EnerSys will operate Chaozhou Xuntong Power Source Company Ltd (CFT), which manufactures two-volt valve-regulated lead acid batteries for reserve power applications.

There are plans to "rapidly expand production" to meet increasing customer demand for CFT's products.

John Craig, EnerSys CEO, said: "We are excited about this acquisition since we are currently unable to meet customer demand for these products.

"This acquisition, coupled with other ongoing investments in our Chinese operations, will allow us to increase production capacity to support an additional USD30 million in sales annually.

"It will also allow us to continue our strategy of expanding production in lower cost regions while effectively using our world-class global distribution network."

CFT is located in eastern Guangdong province, China.