The home of China's biggest forklift manufacturer, Hefei City in Anhui province, will invest RMB120 billion (USD14.9 billion) to develop local industries.

NewsTrak Daily reported Hefei, where Anhui Heli Forklift Truck Group Corp is based, has named 2006 the year of industry and, over the next five years intends to spend RMB120 billion (USD14.9 billion) in industry development.

Hefei will support 10 major national "high-technology industry projects" and more than 20 private enterprises that have more than RMB100 million (USD12.4 million) in sales a year.

Hefei is focusing on eight major industries: equipment and facility manufacturing; household electronics; automobiles; petrochemical and tyres; food and agricultural product processing; pharmaceuticals and biotechnology; new materials; electronics and software.

Foreign capital is expected to speed development of these major industries and the report says Continental Group of Germany will invest EUR600 million (USD714 million) in a tyre project.