The Komatsu BX50 internal combustion forklift.

Komatsu Forklift increased forklift sales worldwide by 11.9 per cent in 2005.

Europe was a key growth market.

Rory Harvey-Kelly, Komatsu Division Europe's head of commercial operations, said the forklift market in Europe grew 3.9 per cent last year while Komatsu sales in the region grew 20.6 per cent.

"We have made great strides forward in Eastern European countries, like Russia and Poland, as well as the emerging markets of Romania, Bulgaria and Hungary," he said.

Komatsu's market share is higher in Eastern Europe than Western Europe. The Eastern European market mainly revolved around internal combustion forklifts but Komatsu said in a statement that its Russian importer "reaped exceptional rewards with warehouse trucks".

When Komatsu unveiled a new range of AX50-BX50 forklifts in Japan in March 2005, 39 of the 100 customers present were European. Harvey-Kelly said the number of European customers was a surprise.

"The company had never seen such numbers before ... Komatsu orchestrated a highly aggressive launch, in tune with the trend launched three years ago when the company's goal of expanding its footprint outside Japan was marked a priority. Before this, Komatsu generated most of its sales in Japan," he said.

European sales of internal combustion forklifts grew 24 per cent and warehouse truck sales increased 30 per cent in 2005. Komatsu could now produce more than 90 per cent of its product line from its European facilities, Harvey-Kelly said. The remaining 10 per cent comprised internal combustion trucks of four tons and above capacity, which continued to be produced exclusively in Japan.

"A number one priority is to expand the reach of the European sales network and increase the number of authorised importers," Harvey-Kelly said.

In 2005, European importers increased from 18 to 35. Harvey-Kelly said Komatsu's "toughest challenge" was finding importers in strategic markets like Germany and Poland.

In Greece, Komatsu's market share was more than 10 per cent, covered by two importers, one in the north and one in the south. There were 30 dealers in Spain and 36 in France. The UK has a sales division that receives products direct from the Italian factories. In Italy, Komatsu now distributes internal combustion forklifts through a distribution agreement established with Italian forklift manufacturer Carer last year.

Harvey-Kelly identified Russia and France as Komatsu's core European markets.

"In Russia, thanks to the excellent job done by our importer, we sold about 2,000 units in the past year. We sell roughly 1,000 units a year in France."