The EJE 220 pallet truck, which will be produced at the new plant.

Jungheinrich AG's Nordestedt plant has reached maximum production capacity, prompting the Hamburg-based manufacturer to plan a new facility in eastern Germany.

Jungheinrich head of corporate communications Markus Piazza said the location of the new plant had not been decided.

"We are taking a close look at several regions. A decision will be made by year's end," he said.

There were currently no details on the financial investment size or production capacity for the new plant, Piazza said.

The Nordestedt plant manufactures electric pedestrian pallet trucks, reach trucks, order pickers and forklift components. Construction for the new plant, a dedicated low-platform truck facility, is slated for 2007 and an official opening planned for the second half of 2008.

"The sustained growth displayed by the materials handling equipment market presents Jungheinrich with a very positive order situation ... Low-platform truck production at Nordestedt is to be transferred to the new facility," a Jungheinrich statement said.

There would be 140 job openings at the new east German plant and 70 extra jobs would be created at Nordestedt next year.

Cletus von Pichler, Jungheinrich board of management chairman, said:
"These plans are further proof of our company's clear commitment to Germany as a place to do business."

Last March, Jungheinrich announced it was turning its sales and service base in Dresden into a plant for used forklift refurbishment (Forkliftaction.com News #251). Jungheinrich officially opened its only non-German forklift assembly plant in Qingpu, China, in August (Forkliftaction.com News #276). Besides the main plant in Nordestedt, Jungheinrich has plants in Moosburg und Lüneburg, Germany.

Jungheinrich had said earlier that forklift production could not keep up with incoming orders, because Jungheinrich's Nordestedt plant was reorganising its manufacturing processes (Forkliftaction.com News #272).

The Nordestedt reorganisation, expected to be completed in 2007, included production sequence changes, installation of new production machines and a new test and development centre.

According to Jungheinrich's interim report for the first half of 2006, the global market for materials handling equipment sold increased 13 per cent from more than 376,1000 units in the first half of 2005 to more than 426,1000 units for the same period in 2006. Warehousing forklifts and counterbalanced forklifts contributed 12 per cent and 14 per cent respectively to the world market growth. Demand for materials handling equipment in Europe increased 12 per cent from more than 155,1000 units in the first half of 2005 to more than 174,4000 units for 2006's corresponding period.