Mitsubishi Caterpillar Forklift Europe BV (MCFE) is planning to transfer electric forklift production to Finland.

The subsidiary of Mitsubishi Heavy Industries Ltd (MHI) intends to phase out production at its Almere plant, beginning in late 2012, in a move to streamline European forklift operations and restore profits.

Due to the global economic crisis, the European forklift market has declined substantially and MCFE faces overcapacity in its European plants.

"It is necessary to restructure the business in order to ensure a solid, stable and healthy future for our European operations," the company said in a statement last week.

Following a detailed study by MCFE and MHI, it was decided that MCFE would maintain a head office and marketing and sales division in the Netherlands. Electric forklift production will be moved to its Järvenpää facility in Finland.

Demand for internal combustion engine forklifts will be met by affiliated production plants, MCFE said.

The company has submitted its intentions to the Works Council for advice, and expects significant job losses to follow.

"We deeply regret that our intended reorganisation will lead to job losses, and will do our best to lighten the situation for the people affected. This is not something we take lightly. But after carefully analysing a range of scenarios, we concluded that this is necessary in order to return to profitability and to ensure a solid, stable and healthy future for our business," says MCFE president Naoyuki Matsumura.

MCFE, formed as a joint venture in 1992, combines the technological, marketing and financial strengths of MHI and Caterpillar Inc. MCFE supplies forklifts through a network of independent dealers in Europe, CIS, Africa and the Middle East.