Propane forklift users learning about US tax credit
WASHINGTON, DC, United States

Operators of propane forklifts can claim a US tax credit of USD0.50 per gallon, but industry awareness of the law and use of its provisions appear to be low.

The US Congress enacted Public Law 109-59 to encourage use of alternative fuels including liquefied petroleum gas, or propane, for an initial three-year period starting  October 1, 2006. Forklifts qualify under the law’s definition of an off-highway business motor vehicle.

“There is no registration deadline per se for forklift operators to take advantage of the tax credit for propane forklift fuel,” says Michael Troop, vice president of legislative affairs with the Washington, DC-based National Propane Gas Association (NPGA).

Generally, “I have heard very few complaints about the process,” Troop says. “Apparently, the IRS has done a pretty good job with the registration process.”

For a company applying for registration, the Internal Revenue Service (IRS) conducts a due diligence process to insure the applicants are who they claim they are and engage in the business they claim, Troop explains. “The IRS also checks to make sure that the business is current with taxes and has not had any problems or violations in the past.”

Most operators need to use IRS forms 637 for alternative fueler registration and 4136 for claiming the credit.

NPGA represents more than 3,500 propane-related marketers, equipment and appliance manufacturers, cylinder and tank fabricators and LPG transporters.

Contact with the US business offices of several forklift dealers confirmed minimal awareness about the propane tax credit.

Operations of distributor Oram Material Handling Systems Inc include a rental fleet with propane-powered forklifts, says David Wagner, vice president and chief financial officer of the firm in Kansas City, Kansas. So far, Oram has not taken advantage of the credit.

For each rental, “we charge a flat USD15 per invoice for a full tank of propane (8.25 gallons) when the forklift is delivered to the customer,” Wagner says. “I don’t know how we would incorporate the tax credit. Each tank would be eligible for around USD4 tax credit.”

Wagner says he is unaware of any Oram customers claiming the tax credit.

Oram distributes multiple brands of material handling equipment including Nissan forklifts and Barrett industrial trucks.

At another dealership, Bret Meyer, controller of OKI Systems Ltd of Cincinnati, Ohio, says: “We may look into it for the future. We do not do a lot with propane trucks.” Mostly, OKI distributes Crown electric forklifts.

USD0.50 per gallon credits are also available for alternative fuels other than propane. These include P-Series renewable biomass-derived components and extracts from natural gas, compressed natural gas, liquefied hydrogen, any coal-derived liquid fuel, liquid hydrocarbons derived from biomass and liquefied natural gas.

July 13-14 postings on a Forkliftaction.com News’ Discussion Forum mentioned the availability of the US propane tax credit for forklift operators.

Over 200 jobs to go at Nacco plant
MAYFIELD HEIGHTS, OH, United States

About 220 people are expected to lose their jobs at Nacco Materials Handling Group Inc (NMHG)’s Irvine, Scotland plant after Nacco Industries Inc announced the plant’s closing last Thursday.

Current electric forklift production at Irvine will be scaled down in 2008 and cease entirely in early 2009.

Instead, NMHG’s new generation of electric counterbalanced forklifts for the European market will start being produced in the Craigavon, Northern Ireland facility, in 2008.  

Craigavon will phase out production of 2 to 3 ton pneumatic internal combustion engine (ICE) forklifts for the US market and focus on meeting Europe, Africa and Middle East demand.

Nacco’s Berea, Kentucky plant will produce the ICE forklifts, supported by frames and major weldments from the Ramos Arizpe, Mexico plant and other components from the Sulligent, Alabama plant. Sulligent will produce hydraulic cylinders for the masts for the US production and 1 to 5 ton transmissions and drive axles for US and Europe.

The transfer of forklift production from Craigavon will be completed by the end of 2008.

Christina Kmetko, Nacco Industries Inc finance manager, says the company decided Craigavon would become a “mixed model plant”, manufacturing electric and ICE forklifts after examining numerous options through a manufacturing review. Overall production rates will be unaffected.

Kmetko’s comments come in response to Forkliftaction.com News’s question on whether it is more cost-effective to manufacture for the European market in Ireland instead of Scotland.

She says Nacco would not be publicly providing cost savings breakdowns for each of the separate forklift production moves.

Currently, staff numbers at Craigavon are not expected to change as a result of the production move to Berea, but Kmetko says Nacco will be holding comprehensive talks with all Craigavon employees and their representatives in the coming months. About 120 workers at NMHG’s European headquarters in Irvine will keep their jobs.

The Irvine plant currently manufactures electric counterbalanced forklifts up to 4.5 ton capacity. Craigavon manufactures ICE pneumatic forklifts up to 5.5 ton capacity while Berea manufactures all models of ICE forklifts up to 8 ton capacity, except the 2 ton to 3 ton pneumatics currently imported from Craigavon.

Manufacturing products in their markets of sale is expected to reduce the company’s exposure to fluctuating currencies. By 2011, the program is expected to save USD20 million in annual cost savings and about USD11 million in working capital reductions.

Most of the restructuring costs of about USD5.8 million will go to future severance payments for Irvine employees, Nacco says.

Going green after 50 years and 600,000 trucks
MARENGO, IL, United States

Nissan Forklift Corp North America (NFCNA) and its parent, Nissan Motor Corp, have introduced an environmental initiative to coincide with its 50th anniversary of forklift manufacturing.

Dixie Jirak, Nissan’s senior marketing manager, told Forkliftaction.com News launching the initiative in 2007 was a “natural fit” with increasingly stringent US Environmental Protection Agency emissions regulations for engine-powered forklifts.

“Also Nissan Forklift [was] combining efforts with those of our automotive parent company in this pursuit.”

In January, NFCNA launched the Platinum II series of forklift engines in North America. The engines have increased fuel efficiency and release reduced emissions. Jirak says the redesign of the cylinder head and pistons helped achieve a more complete combustion while an enhanced cooling system and new electronic control systems increased fuel efficiency (Forkliftaction.com News #294).

NFCNA is working towards achieving ISO 140001 certification by March 2008 and has drafted an environmental policy. A team of Nissan Forklift experts is reviewing current manufacturing processes to identify the forklift manufacturer’s environmental impact, which will be controlled through an environmental management system. An internal audit process of Nissan’s plants will start in December 2007.

The US is Nissan’s largest overseas forklift market. Over 400 people work in the 400,000 square foot (37,161 square metre) Marengo facility, the largest of Nissan’s three forklift production operations in the world.

Recognising the company as one of Marengo’s largest employers, mayor Donald Lockhart and the city council gave Prospect Street, on which the NFCNA plant is located, the honorary name “Nissan Way”.

The first Nissan forklift was made in Japan in August 1957 and introduced to the US market in 1965 under the “Datsun” brand.

By 1984, Nissan Forklift was leading the sales of Japanese forklifts in the US. In the late 1980s, the company bought Marengo, Illinois-based Barrett Industrial Trucks. Barrett was established in 1914 and the acquisition was made to complete Nissan’s range. Nissan became the first Japanese-owned forklift company to sell all five truck classes to the North American market.

Consolidation of Barrett and Nissan was finalised in 1993 and NFCNA was established. Today, Nissan has produced over 600,000 forklifts for global distribution.

A dealer network covering about 200 locations in North and South America sell the Nissan and Barrett forklifts.

Nissan Motor’s industrial machinery division employs over 1,700 people in Japan, Europe and the US, supplying nearly 30,000 forklifts annually to over 75 countries.

GKY: Global market growing at speed of light
JOHOR BAHRU, Malaysia

GKY Machinery (M) Sdn Bhd, which is part of publicly listed Boon Koon Group Bhd, is building a RM10 million (USD2.87 million) plant - triple the size of its current manufacturing facility.

Victor Goh, GKY’s executive director, says the plant spans nearly 30,000 square metres.

“It’s located next to one of the main highways in Johor Bahru. We need more space. We will be building a one-stop forklift rebuilding centre and also a showroom that can display over 1,000 forklifts.”

Construction of the plant on Pasir Gudang highway, which will be used to rebuild forklifts and earth moving equipment, starts in the second quarter of 2008. Currently, the head office and reconditioning centre are located on a “slightly over two-acre” site at Terbrau Industrial Park.

GKY is possibly Malaysia’s largest used and reconditioned forklift supplier. There are about 600 forklifts in its rental fleet and about 1,500 machine units in its sales inventory. The company has three divisions: rental, retail and international. GKY’s sales team sells forklifts directly to end-users, but it also works with 50 dealers in peninsula and east Malaysia and 30 overseas dealers.

Charles Goh, head of the international sales division, says 80% of GKY’s revenues come from forklifts.

“We do send our company representatives to look for potential customers and sometimes overseas customers are referred to us from our existing customers.”

He says the company supplies all types of forklift brands, depending on customers’ needs.

“[We’ve supplied] Komatsu for Russia, Toyota for Thailand, Mitsubishi for Vietnam, TCM for Philippines and Taiwan.” He concedes that “most of the time” GKY deals with Japanese brands with capacities ranging from 0.9 tonne to 35 tonnes.

The sales executive says GKY is sensitive to evolving market needs.

“Now even an old man will check his emails every day, so we had better stop sending offers via fax. By observing market changes, we must plan ahead. It’s all about planning, monitoring and control.”

His elder brother, Victor, agrees that email plays an important role in the business.
“Communication via email is more effective and efficient. We always use email to send offers, prices and photos of machines to our dealers worldwide.”

Charles reflects: “Due to globalisation, the world is shrinking [but] the international market is growing at the speed of light …”

Financial News

Ritchie Bros sets another record
VANCOUVER, BC, Canada
Ritchie Bros Auctioneers Incorporated’s earnings grew 17% more than the first half of 2006, reaching USD44.1 million for the six months ended June 30, 2007.

Gross auction proceeds for the first half of 2007 were USD1.65 billion, also 17% higher than the prior year’s corresponding period. It represents the largest first half in the company’s history. Auction revenues for the first six months were USD163.9 million, a 22% growth from last year.

Ritchie Bros conducted 87 unreserved industrial auctions in North America, Europe, the Middle East, Australia, Mexico and Asia in this period.

Rocla boasts strong sales growth
JÄRVENPÄÄ, Finland
Net sales for Rocla Oyj were up 19.9% for the first half of 2007, compared to the corresponding period last year.

Rocla’s sales were EUR61.2 million (USD82.5 million) for 1 January to 30 June 2007. Operating profit for this period was EUR2.0 million (USD2.7 million). Machine orders at the end of June 2007 stood at EUR27.4 million (USD36.9 million), a 43.8% jump from last year.

Meanwhile, the integration of Rocla’s warehouse trucks and automated guided vehicles operations will be finalised by the end of 2007. In 2006, Rocla merged with its forklift rental business and automated guided vehicle company to improve cost efficiency (Forkliftaction.com News #273).

Fantuzzi first with Regen system
LOS ANGELES, CA, United States

Fantuzzi Reggiane Group has become the first authorised representative to offer the Regen system on new rubber-tyred-gantry (RTG) cranes after signing an agreement with US flywheel systems manufacturer Vycon.

Under the agreement, Fauntzzi will promote Regen as a “proven retrofit technology” with existing crane customers.

About 120 new RTGs produced by Fantuzzi’s subsidiary, Noell Crane Systems (China) Ltd, could be fitted with the Regen System each year. There are over 1,100 RTGs operating worldwide.

Newly appointed Fantuzzi COO and general manager of Noell, Maurizio Altieri, says customers expect to be provided with new technologies that arrive on the market.

“We have decided to add the Vycon flywheel system on our cranes to provide customers with new technology to enhance fuel conservation and reduce emissions.”

Noell Crane Systems (China) was established in 1996 as a joint venture between the Fantuzzi Group and China Merchants Heavy Industries. It produces port equipment, RTG and STS (ship-to-shore) cranes.

Search 4131 listings in the MarketplaceSample of used equipment for sale:

Samsung	SF20L	1999	United Kingdom	GBP 4500	Details
Linde	E 16 C-02 335	2001	Germany	EUR 5650	Details
Drexel	SLT35HLC	1999	United States	USD 48500	Details
Case	586G	2002	United States	USD 23000	Details
Jungheinrich	EJD 20-3G119-57166ZT	1997	Germany	EUR 2500	Details
Ingersoll-Rand	VR-530C	2006	United States	USD 39300	Details
Linde	H 25 T-03 351	2000	Germany	EUR 8800	Details
Komatsu	FG18T-17	2001	Australia	AUD 12000	Details
Raymond	31-R40TT-M	1989	United States	USD 2500	Details
Lees	D55	-	New Zealand	NZD 45000	Details
Caterpillar	GC25K	1999	Australia	AUD 12000	Details
Gradall	534D9-45	2001	United States	USD 43000	Details
Crown	RD-5080S-30-270	> 5 years	Australia	AUD 24000	Details
Hyster	H80	2001	United States	USD 12600	Details

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The future is now for forklifts and RFID
NORTH RYDE, New South Wales, Australia

The future for supply chain asset management may lie in Radio Frequency Identification (RFID) which allows individual pallets to be tracked from start to delivery, but most Australian companies are still waiting for the technology to be perfected before embracing it fully.

Perfection is on the doorstep, according to director Murray Fane of CHEP Asia-Pacific, who tells Forkliftaction.com News that the technology is close to 100% accuracy.

“We have started to achieve 100% reads not just with pallets but also with pallet loads of our plastic crates. This means we will soon have the ability to track goods moving in our crates and other equipment throughout the supply chain at 99.99% accuracy. This is a step change and I expect to see take-up grow exponentially on the back of it.”

Fane warns forklift companies to get ready to implement the new technology. “We’re so close to 100% accuracy that the market will start to expand quickly.

“Forklifts will play a large part in it and this is because forklift-mounted readers have more time to read the tag as opposed to stationary readers which have to read quickly as a forklift drives past at speed.

He acknowledges the reasons why forklift suppliers have been reluctant thus far to invest in RFID technology. “If their customers cannot see value in RFID, then they are unlikely to pay for it. It also takes substantial technological investment to select the right tag and reader combination and since technology is moving so fast, they will not want to invest in the wrong choice.”

However, says Fane, when 100% accuracy can be achieved, preferably using Electronic Product Code (EPC) standards, then it will be far less risky to invest in hardware.

CHEP is at the forefront of the RFID research and took part in the EPC Network Demonstrator Project extension last year aimed at demonstrating the potential of the technology. The project tested the concept of paperless delivery and the use of ePOD (electronic proof of delivery) through EPC.

Fane says that by using ePOD and paperless delivery, process times are cut 49 minutes per delivery, with an additional general administration saving of two hours and 43 minutes per day at a single CHEP service centre.

“We estimate that an end-to-end transaction involves a total turnaround of 175 minutes for both CHEP and the customer. In a controlled environment, ePOD and paperless delivery simplifies the workloads and improves productivity for administrative staff, drivers and other logistics staff.”

In the trial, five manual steps were removed from each of the pallet receiving, hire and de-hire processes, including paperwork duplication, data entry and load checking, which benefits both the customer and supplier.

CHEP discovered that in order to achieve 100% read rates, RFID tags have to be designed specifically for the application.

“You need to design the right tag for the item it is tracking and the environment, and you need people who have the knowledge to ensure readers are set to their optimum efficiency. One advantage of using tags on reusable assets is most of this work has already been done by the asset supplier,” explains Fane.

The next step for CHEP is to integrate the RFID system with its existing Personal Digital Assistant system (rugged handheld mobile computers), and it is in the process of negotiating with some of its FMCG supply chain customers in order to make the project viable.  Says Fane: “Since our equipment moves through the whole supply chain, the real benefit comes when we collaborate with customers on data sharing.”

The company is more advanced in the automotive market, and is already installing readers at its automotive service centres, and has tagged its plastic crates that carry automotive parts. “Our CALM system allows us to take production forecasts from car manufacturers enabling us to send our equipment (crates and bespoke equipment packaging trays) to the component supplier at any point around the world in time for them to pack components and send to the production line. This equipment will be RFID–enabled, allowing us to track individual items out from our service centres and back again.”

Australian distributor for Heli forklifts making inroads into the local market

Pacific Heli are the Australian distributors for the hard working and affordable Chinese brand, Heli. Since 2006, Pacific Heli have been establishing a dealer network country-wide for their durable 1 – 16 tonne range and now have principle dealers in each state. Pacific Heli provide full warranties and have a comprehensive range of products and spare parts for quick and efficient maintenance.

Pacific Heli are looking for dealers in all Australian states and territories to join their network.

To contact us or find out more, click here to visit the Pacific Heli ShopFront.

Rough and ready for Australian market
HALLAM, Victoria, Australia

Exclusive Australasian distributor of Mast Explorer forklifts, Calibre Material Handling (Calmat) of Hallam, Victoria, will release its latest rough terrain model into the market in September.

The H50DA 2WD model with automatic differential lock is the latest offering from the Spanish manufactured range of forklifts. It features a 100hp Perkins motor, Linde transmission and axle assembly, an integrated 1,800mm wide side shift carriage, dual free lift cylinder mast by LTE, the largest mast manufacturer in Europe, full road lighting and “joystick” mast and attachment control.  

According to Calmat managing director Wayne Franklin, the Spanish-made rough terrain forklifts are ideally suited to conditions in Australia, and typically used by construction and building suppliers such as brick, block and tile companies on site, by transport companies involved in deliveries, and by mining companies.

“The machines have been well accepted,” he says, adding that Calmat offers Perkins turbo and non-turbo variants, Rexroth and Linde transmissions, Grammer seats and the latest in mast and side shifts, plus options for fork positioning and other attachments.

“We are a specialised supplier, so we know the market and our customers and work hard to service them well,” says Franklin.

The company, through Allforks Cat, recently supplied Argyle Diamond Mine with an H25DA constant 4WD hydrostatic drive machine, fitted with a 4,000mm triple-stage dual free lift mast, integrated carriage, full glass cabin with air conditioning, 14 ply tyres, full suspension seat and various other mine specifications and fittings.

“It’s an ideal machine for general work in the stores areas as well as around the mine site, delivering product to the various work areas. The machine’s compact nature and great all terrain capabilities make it ideal for this type of work. It is one of a number delivered to mine sites around Australia.”

According to Franklin, new 3.5ton and 4 ton 4WD models will be released late this year or early next year, and the new 6 ton and 7 ton 2WD machines will be available before the end of this year.

He tells Forkliftaction.com News that the company prefers to distribute through ‘partners’ in the forklift industry and currently has arrangements with United Equipment in WA and Hubtex Australia in NSW and would be pleased to communicate with other interested companies.  

“We don’t compete against many of the forklift companies and work with our partners to ensure a good, profitable and on-going relationship. The machines have been well accepted and are the best in the market in terms of service and spare parts availability.”  

Briefs
BRISBANE, Queensland

Second-hand forklift dealer opens in Nudgee

Forklifts International, which specialises in the sale of second-hand diesel, petrol and LPG forklifts, has just opened in Nudgee Road, Ascot in Brisbane.
Owner Tamizuddin Ghumra, or ‘TK’  as he’s known, says all brands of forklifts will be on sale including Toyota, Komatsu, Nissan and TCM - and all equipment is in good running condition.  
“I’ve had a lot of enquiries already from the light industrial customers in the area,” he tells Forkliftaction.com News. “We also import machines from Japan and are willing to export to any customers abroad,” he adds.

Latest in robotics on show

As part of National Science Week 2007, CSIRO is opening its robotics and automation laboratories in Brisbane for everyone to explore.
Visitors to the Queensland Centre for Advanced Technologies will see the very latest technologies in robotics, sensors and automation for environmental management, mining and industry.
There will be two Open Days: Saturday, August 25 for the general public and Monday, August 27 for schools.
On show will be a robotic helicopter, several large automated industrial vehicles that are able to operate without human intervention, and Starbug, CSIRO’s robotic submarine.

The All-New TCM PRO Four Wheel Electric Lift Trucks

SWEDESBORO, N.J. – July 03, 2007 – The New TCM PRO-CB Class 1 four wheel electric lift trucks are clean sheet designs engineered to increase your operation’s productivity and profitability.  In capacities ranging from 3,000 to 6,000 lbs, they deliver reliable day-to-day performance, improved safety, easy operation in restricted spaces, and reduced maintenance.

Click here for the full text of this release, including pictures.

EP shows off it's T-Series:TIGER forklift

E-P is the no.1 manufacturer of electric warehouse equipment in China. The E-P electric pallet trucks and stackers are world class in quality, performance & appearance with a competitive price and a 100% service guarantee. E-P manufactures a global range of materials handing equipment: hand pallet trucks, electric pallet stackers, electric pallet trucks, forklifts and more. Now E-P launches its new model forklift T-Series: TIGER. Diesel-powered models FD20T, FD25T and FD30T have a rated capacity of 2000 kg up to 3000 kg and a lift height of 6000mm.

Click here for more information on this product, including pictures.

RICO introduces new all electric - coil handling AGV design

BPR/RICO Equipment, Inc. has just announced their completion of a revolutionary, high tonnage, all electric coil handling design for an AGV system to move massive steel coils weighing up to 23 metric tons. The system will handle steel coils moving through the manufacturing process for a major US steel producer located in the United States. “As the premier leader in our industry, we pride ourselves on staying two steps ahead of the competition. Our newest generation of ram straddle trucks is no exception. Our engineers were intent on improving upon their previous designs,” says company president Dave Mueller.

Click here for more information on this product, including pictures.

Highlights of Safety Conference
ALTON, United Kingdom

The Fork Lift Truck Association (FLTA) says participants in its one-day safety conference on September 27 can expect to receive “high-quality guidance and practical solutions”.

Click here for the full Fork Talk feature, including pictures.

Rob Vetter: Safety or Compliance: If You Have To Choose…
BLAINE, WA, United States

Regardless of what the ‘regs’ say or do not say, whatever it is you are doing, you must do it as safely as possible.

Click here for the full Safety First feature, including pictures.

Chris Jones: CityState Machinery
Adelaide, Australia

Finding good quality used machinery in the earthmoving, materials handling and transport industries is a time-consuming and difficult task. Chris Jones of Adelaide-based CityState Machinery specialises in this field, promising customers in Australia and overseas that “if you can’t find it, we will!”

Click here for the full Industry Profile feature, including pictures.

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