Russia is the world's fastest growing materials handling equipment market, posting 90 per cent growth for the first four months of 2006, according to Jungheinrich AG.

At Jungheinrich's annual general meeting on Tuesday, shareholders received a draft resolution to increase share dividends and heard a summary of the industry's markets so far this year (Forkliftaction.com News #212).

The Hamburg-headquartered company had done well, with orders received jumping 12 per cent to EUR766 million (USD967.5 million) for the first five months of 2006, and net sales increasing two per cent to EUR648 million (USD818.5 million).

The world materials handling equipment market grew 11 per cent from January to April 2006, Jungheinrich said. Eastern Europe recorded a 44 per cent growth while Russia expanded 90 per cent. Germany grew by 14 per cent.

Jungheinrich said it was focusing on expanding sales in Eastern Europe. Currently the group has sales subsidiaries in most of Eastern Europe, including Poland, Hungary and the Czech Republic. Newer companies have been established in Russia, the Ukraine and the Baltic states.

Jungheinrich spokesperson Markus Piazza said the group did not report figures for single markets but the group's market share for Russia and Eastern Europe grew more than the two markets.

"Numerous multinational companies are investing substantially in Russia. All these companies need intralogistic solutions," Piazza said.

"Research & development investment in 2005 totalled EUR40 million (USD50.5 million). The figure for 2006 will be increased. Jungheinrich intends to increase capital expenditure to EUR70 million (USD88.4 million) in 2006 compared to EUR42 million (USD53 million) in 2005."

The previous sales forecast for 2006 was EUR1.75 billion (USD2.21 billion). Jungheinrich has now adjusted the forecast to "significantly more than EUR1.75 billion".