Jungheinrich AG, the world's fourth largest forklift supplier, has established a sales subsidiary in China in a bid to increase its toehold in the fast-growing Asian market.

Jungheinrich Lift Truck (Shanghai) Co, Ltd would be based in Shanghai, with branches to be set up in Beijing, Guangzhou (Canton) and Suzhou, a company representative said.

Jungheinrich's focus would be supplying warehousing equipment to Chinese logistics customers. The company says this sector has grown "to the point where they now constitute (our) principle customer group".

Jungheinrich is the latest of the large forklift manufacturers to ramp up their involvement in China, where the market absorbed more than 45,000 forklifts last year. Jungheinrich said market volume would grow by 30 per cent this year.

Initially, Jungheinrich China will concentrate on regions around Beijing, Shanghai and Guangzhou. A central spare parts warehouse would begin operating in Shanghai, and local sales and service staff were being trained by German experts.

The company intends establishing itself first before making its public debut at CeMAT Asia 2004 in Shanghai in October.