Pictured (from left): Kalmar president Christer Granskog, Finland ambassador Benjamin Bassin, KONE CEO Antti Herlin, Finnish Trade & Development Minister Paula Lehtomaki and Shanghai vice mayor Yang Xiong.

Construction work on Kalmar Industries' USD10 million assembly plant in Shanghai's Lingang Industrial Park is set to begin after a signing ceremony in Shanghai on November 17.

On hand to mark the occasion were the Shanghai vice mayor Yang Xiong, Shanghai Municipal Government vice secretary-general Zhang Hui Min and Finland's Trade & Development minister Paula Lehtomaki. Other guests joining the ceremony included KONE Corporation CEO Antti Herlin, Kalmar president Christer Granskog and a Finnish business delegation.

The Lingang economical industrial zone is next to Yang Shan Port - a 20 million twenty foot equivalent unit container terminal development in which the first berths will commence operations in 2005.

Kalmar has operated in China since 1989 and is currently the biggest supplier of reach stackers, terminal tractors and heavy container stackers to the country's ports and terminals.

The new assembly plant will primarily serve the Asian container handling market, the fastest growing area for Kalmar. Shanghai is an optimal location for this purpose as it has become the most important port in China.

The new 7000 square metre factory and office building are located on a 50,000 square metre property. Here Kalmar Industries (Shanghai) Co Ltd will begin assembling terminal tractors by the end of 2005. Kalmar's Wai Gao Qiao facility will continue to be the base for the company's service and support operations in Northern China.