Reach truck production at the Nordestedt plant.

Global demand for materials handling equipment grew "substantially" in the first half of 2006, with Eastern Europe's 44 per cent growth the largest, Jungheinrich AG said in an August 2 statement.

The overall world market grew 10 per cent in the first quarter of 2006 and 17 per cent in the second quarter. Eastern Europe's growth exceeded western Europe (eight per cent). Asia grew 17 per cent and North America 13 per cent. China was Asia's growth engine, posting market growth of 34 per cent.

Orders for new Jungheinrich forklifts grew about 15 per cent from EUR236 million (USD304 million) (2005 corresponding period) to EUR271 (USD349 million) million in the six months to June 30.

Forklift production could not keep up with incoming orders, partly because Jungheinrich's Nordestedt plant was reorganising its manufacturing processes, the statement said.

"Since the beginning of the year, the value of orders on hand increased 60 per cent. However, due to realignment of the Nordestedt site's manufacturing processes, plant output increased only marginally year on year."

Reorganisation at the Nordestedt plant included production sequence changes, new production machines installation and a new test and development centre, Jungheinrich spokesperson Markus Piazza said.

"The reorganisation will allow a higher plant output and substantial cost savings," Piazza said. "It will be completed in the first half of 2007."

The Norderstedt plant produces battery-powered pedestrian trucks, reach trucks, horizontal order pickers and vertical order pickers.