Nippon Yusoki Co Ltd has started producing electric reach forklifts at its subsidiary Shanghai Nichiyu Forklift Manufacturing Co Ltd in Shanghai, eastern China.

A Nichiyu spokesman said the forklifts would only be sold in the Chinese market.

"For other markets, electric reach forklifts will be manufactured in our Kyoto factory in Japan," he said.

Nichiyu Australia's operations manager John Roach said the forklifts would not be sold outside China because they did not suit other markets.

"In Europe and Australia we have variable lift heights, lots of ours go up to 10 metres but the Chinese use ones which mostly go up to three or four metres," he said.

"The Chinese also do not use the sit-down type but the stand-on type. This just comes down to what operators prefer.

"In Australia we follow the European style because of our health & safety configurations. People who are on the machines all day want to sit. They get better productivity - less fatigue and backaches," Roach said.

The Nikkan Kogyo Shimbun newspaper reported Nippon invested JPY80 million (USD757,432) to construct a new production facility at the Shanghai plant.

According to the newspaper, the company expects to manufacture and sell 1,500 electric forklifts in China this year, which would be a 63 per cent year-on-year increase.

Nippon's Chinese-made electric forklifts are marketed under the Nichiyu brand name.