Nacco Industrial Group will close its Sydney, Australia, logistics branch and base its south-east Asian headquarters in Shanghai, China, according to Asia Pulse.

The newspaper reported Nacco chief executive Alfred Rankin as saying, after a meeting with acting Shanghai mayor Chen Liangyu, that Nacco would move its logistics transportation arm from Sydney to Shanghai's Pudong New district.

Nacco's Sydney office would not comment before consulting the Mayfield Heights, USA, head office. It is not clear whether staff will be moved from Sydney, nor whether jobs will be lost.

Mr Rankin said Nacco's decision came from confidence in the sustained economic growth, investment environment and business expertise in Shanghai, and the efficiency of the Shanghai government. Mr Chen said construction in Shanghai would bring additional investment opportunities.

Nacco has, in recent years, opened China outlets in Beijing, Tianjin, Dalian, Shenyang, Suzhou and Wuhan. It established a forklift joint venture in Pudong in 1998.