 Doosan Infracore China managing director Byunghoo Kang |
Over 1,000 manufacturing jobs will be available when Doosan Infracore completes its second forklift plant in Suzhou, China, in August 2009.
The forklift manufacturer held a groundbreaking ceremony in Suzhou, Jiangsu province, last week, for a production complex dedicated to forklift and compact excavators. The complex will be run by Doosan Infracore China Co and Doosan Infracore (China) Investment Co.
Doosan already has a plant for forklifts and mid-sized and large excavators in Yantai, China. Managing director Byunghoo Kang tells
Forkliftaction.com News the increased capacity will boost the company's global competitiveness.
"The drive to boost global sales will be strengthened as well. Importantly, both complexes (Yantai and Suzhou) will have optimal production systems and operating at two locations will foster greater specialisation."
Kang explains that China's rapid growth and logistics industry demand have increased forklift demand by about 30% annually.
"Last year, 110,000 forklifts were sold in China. The government has also been promoting urbanisation and farming community development, and annual compact excavator sales have grown by an average of 60% per annum," he says.
Doosan will invest USD192 million to build the new complex located on a 240,000m² site. Initial production, planned to start in the first half of 2009, will total about 20,000 forklifts and 10,000 compact excavators annually. This is expected to grow to 44,000 forklifts and 31,000 compact excavators by 2013.
Most of Doosan's forklift range will be produced in Suzhou and about half of them are planned for export. The site will need about 1,100 new employees once it is operational, Kang says. Construction on the complex began in January.
According to a Doosan spokesperson, Suzhou is China's most advanced industrial zone with excellent access to overland and marine shipping.
"It is near Shanghai, where China's demand for forklifts is highest, as well as south China, where most of the compact excavators are sold. Therefore, Doosan Infracore stands to save money by producing at Suzhou," he says.