MHI's new forklift plant in Dalian, China.

Mitsubishi Heavy Industries Ltd (MHI) has started producing internal combustion forklifts at its new forklift plant in Dalian, China.

MHI says Dalian will initially manufacture the company's newest internal combustion forklifts with one to three ton capacities for the Chinese market and will in future be a forklift supply base to emerging forklift markets.

About 150 people work in the 27,000sqm (290,625sqft) plant located in the Dalian Economic and Technological Development Zone in Dalian, Liaoning Province. The plant is expected to produce 7,000 units per year in three years' time.

Forklift core components will be sourced from Japan while the plant produces major welded components. Japanese affiliate companies operating near Dalian will be contacted for other sheet metal parts, which will also be supplied to MHI's plants outside China.

Once business is on track, MHI plans to increase its production models and expand its sales area, focusing on emerging markets.

MHI's three other forklift plants are in Sagamihara, Japan; Houston, USA; and Almere, the Netherlands.