Linde China recently unveiled its first locally made reach stacker

Chinese forklift manufacturers are expanding their range of domestically-made machinery and buying up subsidiaries to help boost domestic production, forliftaction.com News correspondent Paris Lord reports.

Linde China recently unveiled its first Chinese-made reach stacker, built at its domestic base in Xiamen, south-eastern Fujian province. The project took seven months to complete.

Company officials say the heavy-duty forklift was, until now, built in Germany.

It's unclear what the company's sales forecasts are, or how it will ensure the same quality standards as in Germany, as by press time it had not responded to repeated requests for an interview.

However, Linde China said in a statement the localisation of the reach stacker will allow it to offer "shorter delivery times, greater flexibility, improved parts availability" as well as better technical support.

The company has also recently released its "E-gen twin trucks" marketing project, which covers products especially designed for Asian markets. Two series of trucks are covered in the first stage, 2.5-ton to 3-ton electric and diesel engines. The AC motor and Deutz power systems will also be improved so they use less energy, are more economical and have lower emissions.

Meantime, Guangxi Liu Gong Machinery Company has announced that it will create a forklift company with an annual production capacity of 10,000 units when its acquistion process finishes in 2010. Liu Gong is located in southern China's Guangxi Zhuang autonomous region and is a major engineering machinery manufacturer based in Liuzhou, state media reported.

The company will buy three subsidiaries of its large shareholder, Guangxi Liu Gong Group, including Shanghai Liu Gong Forklift.

The combined entity will be known as Liuzhou Liugong Forklift and will have a registered capital of CNY100 million (US$13.2 million). It has forecast sales of CNY679.9 million (US$89.5 million) in its first year with net profits of CNY80.8 million (US$10.6 million).

In a separate buy-out, Xiagong Machinery will spend CNY70 million (US$9.2 million) to finish its acquisition of two subsidiaries, including a forklift manufacturer, from its controlling shareholder, Xiagong Group, state media reported. Xiamen Forklift Truck Factory produces up to 5,000 forklifts annually.

The other company, Xiamen Gear Manufacture Factory, specialises in spare parts, driving axles and transmission gears, the China Industry Daily News reported.