Forklift News - DAEWOO DRAMAS WON'T AFFECT FORKLIFT OPERATIONS

SYDNEY, Australia -- Suggestions that the bankruptcy filing by Daewoo Motor Company, based in Seoul, Korea, could seriously affect the company's forklift operations are unfounded, says Daewoo Heavy Industries (DHI) managing director, Australia, Harry Park.

DHI has not been part of Daewoo Motor Company since August 1999 and the bankruptcy had "nothing to do with Daewoo forklifts", Mr Park said.

On October 23, DHI's machinery division, which builds forklifts, became a separate entity, called Daewoo Heavy Industries & Machinery (DHIM).

DHIM manufactures forklifts for Crown in Australia, New Zealand and Malaysia.

Crown's Daewoo-made trucks have stamped their mark in Australia, commanding 12% of the market, according to Crown, after only three years. DHIM holds 5% of the world forklift market, and almost 70% of the Korean market.

Daewoo Motor sought court protection from creditors last month after banks decided not to provide new loans without the Korean labor union's cooperation on a restructuring plan.

Industry insiders say creditors told the company to reduce overheads by shedding staff, or risk collapse. Rioting Daewoo manufacturing plant workers hit the streets of Korea when the news spread, forcing the company to declare itself bankrupt to cut staff levels.

In a newscast on Korea's Arirang TV on November 27, DHIM Industrial Vehicle Division managing director Ra Duckjoo said that, since separating from DHI, the company had received orders worldwide and offers for business tieups.

General Motors and GM's Italian partner Fiat are currently in talks with Daewoo Motor Company, which, at June 30, had interest-bearing debts of US$7.45 billion, according to Reuters.

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