A Jungheinrich low-platform forklift.

Jungheinrich AG is increasing forklift production output with the construction of a 15,000 m² (161,458 sq ft) facility in the German state of Saxony-Anhalt, to be completed in 2009.

Jungheinrich has three manufacturing plants in Gemany - Norderstedt, Moosburg and Lüneburg. The forklift manufacturer wants to shift electric low-platform forklift production from Norderstedt to the new plant in Landsberg. This will free up space in Norderstedt and increase production output for Jungheinrich's electric high-platform forklifts, reach trucks and forklift components.

Project director Marc Ehrmann says the global electric low-platform forklift market is expected to grow at an average rate of 8% per annum for the next few years.

Several factors contributed to Jungheinrich selecting the Leipzig region for the new plant's location.

Not least is the area's good transport infrastructure including motorway access, train connections and Leipzig Airport. Ehrmann also praises the commitment of state and local policymakers to the project.

"There was intense support by the investing and marketing organisation of the Saxony-Anhalt government - very good co-ordination of all competent authorities of the state and city. At no time did they keep us waiting for any information or answers."

The plant, which will start construction in the northern hemisphere's spring of 2008, will create more than 100 new jobs in Landsberg. The project has an approximate EUR30 million (USD44.1 million) budget.

Ehrmann says the Leipzig region was favoured because of its skilled workforce.

"We expect to find well-trained manpower [there]. Leipzig has developed into one of the most popular cities in Eastern Germany in the last few years [and] Jungheinrich is an attractive employer."

The head of the new plant hasn't been chosen and "only a few" employees from Norderstedt including product managers and development engineers will move to Landsberg. The company will recruit new management staff, engineers and technicians.

Landsberg's initial capacity will be 30,000 forklifts annually with opportunity to grow with market demand. The city is about 400km (249 miles) from Norderstedt and Hamburg by autobahn.

Jungheinrich undertook an extensive modernisation of the Norderstedt plant from 2005 to 2007. The company's central spare parts logistics centre for central and northern Europe is located in the Norderstedt site(Forkliftaction.com News #331).