Linde AG will become a 35 percent shareholder in Komatsu Forklift and run the company as a joint venture with Komatsu Ltd under a deal announced this week.

Komatsu Forklift is Japan's second-largest forklift manufacturer and holds seventh position in the world market. Linde will increase its shareholding by mid-2003, and has an option for further investment.

Linde, Komatsu and Komatsu Forklift have been partners since entering a cooperation agreement in May 2000. Under that deal, Linde assumed 10 percent of Komatsu Forklift, and Komatsu Forklift assumed 10 percent of Linde's Fiat OM Carrelli Elevatori SpA subsidiary.

Fiat became Komatsu Forklift's importer, dealer and distributor for Europe, and began manufacturing forklifts for the Japanese company. Komatsu Forklift began marketing Linde equipment in Japan. In China, Linde now manufactures Komatsu forklifts and components on behalf of Komatsu Forklift in Xiamen. In the USA, Linde and Komatsu Forklift operate independently.

With the new joint venture, Linde and Komatsu Ltd would strengthen their international cooperation while maintaining their brands, a statement said. The planned joint venture is still subject to approval by competition authorities.

Outside Japan and Germany, both companies will continue to market their own products and services. However, in southeast Asia, Komatsu Forklift and Still, a Linde subsidiary, have merged their marketing activities.

Linde and Komatsu Forklift will share technical knowledge and cooperate on development projects.