Konecranes' stand at CeMAT Asia 2007.

Konecranes anticipates growth in China will overtake the group's global sales growth for 2007 and the coming years.

The group made the comment in response to a Reuters news report this month.

Konecranes started producing empty container handlers and reach stackers in its fourth Chinese plant in April 2007, slightly later than initially planned (Forkliftaction.com News #283).

Konecranes president for north east Asia, Harry Ollila, tells Forkliftaction.com News the delay was not "dramatic" and was caused by prolonged heavy rainfall during foundation work for the Shanghai plant.

As the group will publish its third quarter result on 31 October, it has to be careful about making predictions on future issues that might impact on its share price, Ollila says.

Therefore, Ollila won't comment on the new plant's targeted production volume in its first year.

"Sales of forklifts have developed well in China and progress in this business segment is good," Ollila explains, but adds that no decision has been made on a "phase two" expansion of the plant that was originally scheduled for 2008.

Konecranes' sales in Asia account for 13% of group sales and China accounts for about one-third of that.

Ollila predicts the Chinese market for Konecranes' products is expected to overtake the global market in the long term.

"The development of the crane market follows the development of industrial production. In China, the growth of industrial production recently has been around 15%, while the main European countries and North America have had single-digit growth."

Chinese companies are included in the group's radar for acquisition and joint-venture opportunities.

"We are continuously looking for opportunities to grow ... China in this respect is no exception," Ollila says.

The group used this year's CeMAT Asia 2007 to showcase its products, including forklifts produced at the Lingang facility, near Shanghai.