FORKLIFTACTION.COM
MATERIALS HANDLING ONLINE #36 November 22, 2001
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The independent, global newsletter for industry professionals.
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IN THIS ISSUE:
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1. KALMAR WINS USD27 MILLION STRADDLE DEAL
2. FOCUS: HONG KONG FORKLIFT MARKET "SLUGGISH"
3. BARLOWORLD PLANS TO EXPAND
4. IMPSA: IMPORT POLICY RELAXATION WILL COST JOBS
5. -* ADVERTISEMENT -* ELGAS REDUCES FORKLIFT BREAKDOWNS
6. LINDE RESULTS DOWN, FORKLIFTS HIT WORST
7. GAMBIA PORT FACING EQUIPMENT CRISIS
8. INSIDE FORKLIFTACTION.COM
9. MOVERS & SHAKERS
10. TAX BREAK SEES JUNGHEINRICH PROFIT JUMP
11. NACCO AND WANDALEX SIGN POLAND DEAL
12. WATTS TYRES NOW MANUFACTURED IN BRAZIL
13. MHI TO CONCENTRATE ON FORKLIFTS
14. MAJOR MATERIALS HANDLING EXHIBITIONS AMALGAMATE
15. PALFINGER PROFITS DOWN
16. SUMI TURNS 20
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1. KALMAR WINS USD27 MILLION STRADDLE DEAL
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DURBAN, South Africa -- Kalmar Industries will soon deliver the first of 60 straddle carriers in a USD26.8 million contract reached with South African transport conglomerate Transnet.

The three-year deal is part of a USD138 million project to replace container handling equipment at Durban, according to Lloyd's List.

The straddle carriers,with three-high stacking capability, will be built through a partnership with Kalmar's South African joint venture, African National Engineering.

The carriers will use Sisu diesel engines and be fitted with stainless steel cabins for Durban's corrosive weather conditions.
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2. FOCUS: HONG KONG FORKLIFT MARKET "SLUGGISH"
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Hong Kong -- The Hong Kong materials handling equipment industry has been weakened by a slowing economy and the September 11 attacks on the USA, says a leading industry player.

Mechanical and Transportation Equipment Ltd (MATE) managing director Marco Wong, who has more than 30 years' experience in materials handling, said the Hong Kong market was "sluggish".

He warned that materials handling distributors' days were numbered. MATE's revenues had decreased 35 percent over the last three years. "It is not the time to put your money into the distribution business," he said. "The economy is changing from manufacturing to services. The trend now is for manufacturers of materials handling equipment to sell directly to end users."

There were now less than 10 major materials handling equipment distributors in Hong Kong. MATE distributes Jungheinrich, BT Prime-Mover and Nettco products.

Mr Wong said MATE had sold just 24 Jungheinrich forklifts this year, to a government supplies department. "A lot of forklift distributors have been losing (money) this year, and everybody is fighting for survival," he said.

Mr Wong said he planned a new scheme to not only sell forklifts, but provide materials handling solutions to customers. "The strategy is to provide a total solution, not just selling, but integrating forklifts with racking, logistics, warehousing management systems and information technology," he said.

Hong Kong's future forklift prospects would come from China. Mr Wong said demand for materials handling equipment in China would grow by more than 15 percent each year. "The big players in the forklift business are in China," he said.
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3. BARLOWORLD PLANS TO EXPAND
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DURBAN, South Africa -- Barloworld plans to expand through acquisitions it has identified in the US.

Chief executive Tony Phillips told Business Day that, with the US economy suffering after the September 11 terrorist attacks, "there are some very good opportunities at good prices".

He said the most attractive potential acquisitions were Freightliner truck and Hyster forklift dealerships. Barloworld is already involved with both companies.

Barloworld managers would travel to South America next year looking at capital goods distribution in Argentina, Brazil and Chile, Mr Phillips said.

Barloworld's revenue surged 24 percent to R27.9 billion (USD2.86 billion) from R22.5 billion (USD2.3 billion) for the year ended September 30, but profit fell to R687 million (USD70.37 million) from R1.5 billion (USD150 million).
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4. IMPSA: IMPORT POLICY RELAXATION WILL COST JOBS
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KUALA LUMPUR, Malaysia -- Relaxing import rules on gantry cranes could see a loss of RM425 million (USD111.87 million) and 1000 jobs for Malaysia, says gantry manufacturer Impsa Malaysia Sdn Bhd chairman Datuk Moehamad Izat Emir.

Mr Moehamad Izat told the New Straits Times that the government had relaxed a 10-year-old policy mandating all port operators to buy only Argentinian-made Impsa gantry cranes.

In that time, Impsa Malaysia had customised more than 50 gantries for Malaysian ports under licence from Impsa Port Systems in Argentina, which owns 40 percent of the Malaysian branch.

Impsa Malaysia, which has more than 80 percent of the Malaysian gantry market, had also customised 25 cranes in a RM500 million (USD131.61 million) contract for various countries, including Indonesia, Taiwan, China, Sri Lanka and Saudi Arabia.

In other container-handling news, Finnish crane-maker KCI Konecranes has won a USD9.73 million crane deal with Spain's Terminal de Contenedores de Algeciras SA. The company told Reuters it was the third order received since launching its ship-to-shore crane in September.
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5. -* ADVERTISEMENT -* ELGAS REDUCES FORKLIFT BREAKDOWNS
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SYDNEY, Australia -- Impure gases can affect forklift performance. Residues build up on a forklift's convertor diaphragm, causing power loss, and leading to costly breakdowns.

Elgas, Australia's largest gas distributor, has launched the Elgas Forklift Premium gas supply and delivery service. Elgas Forklift Premium is 95 percent pure propane, meeting international standards.

Elgas can provide bulk on-site storage or a cylinder exchange service dependent on fleet size. The company has gas reserves in Victoria and New South Wales, ensuring uninterrupted gas supply throughout Australia.

For more information, contact marketing manager Greg Wilson by email greg.wilson@elgas.com.au or by phone 02 8336 4307.
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6. LINDE RESULTS DOWN, FORKLIFTS HIT WORST
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WIESBADEN, Germany -- Linde has reported September third-quarter results below expectations and lowered its full-year earnings outlook as the global economic slowdown hit growth at its forklift businesses.

Economic growth in Western Europe has "lost impetus and Germany is on the verge of recession", a company report said.

Linde said industrial truck markets were regressive worldwide. While US demand continued to decrease and Asia "stagnated", Europe showed only modest growth. The forklift business was particularly affected, as "it is more vulnerable to market fluctuations".

Despite slowing sales, Linde's three industrial truck groups, Linde, Still and Fiat expanded their market shares. Worldwide sales rose 8.8 percent to 2.245 billion Euro (USD1.98 billion) and order intake rose by 3.5 percent to 2.354 billion Euro (USD2.08 billion). Orders on hand totalled 618 million Euro (USD545.32 million), a 4.3 percent increase on 2000.

Order intake and sales in hydraulics suffered from the previous year, due to "the flat economic situation", which had affected customers in construction and agricultural machinery, Linde said.
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7. GAMBIA PORT FACING EQUIPMENT CRISIS
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BANJUL, Gambia -- Offloading containers at the Banjul port has degenerated from being "poor and inefficient to a crisis of unmanageable proportions", say the region's business leaders.

A report by The Independent newspaper said traders blamed inadequate port facilities, "a dearth of forklifts for offloading containers" and bureaucratic red tape for goods taking months to be released by the Gambia Ports Authority (GPA).

Clearing agents told the Independent the GPA had only two container handlers to offload as many as 200 containers a day, and the problem, which doubled when a machine broke down, also affected outgoing container traffic.

Port congestion in Gambia is similar to frustrations being felt at ports in Nigeria, which prompted executives of the Nigerian Ports Authority to embark on a purchasing trip in May seeking new equipment.
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8. INSIDE FORKLIFTACTION.COM
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9. MOVERS & SHAKERS
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DURBAN, South Africa -- Barloworld has appointed five new directors to lead its international expansion. Ramon Fernandez-Urrutia, chief executive of the company's capital equipment business in Spain and Portugal, Peter Maybury, chief executive of Barloworld Scientific in the United Kingdom, and Brando Diamond, chief executive of Barloworld Motor in South Africa, have joined the board. Non-executive directors Andrew Smith and Tim Curtis will be replaced by British directors Robert Tomkinson and Graham Ross Russell.

SYDNEY, Australia -- Linde Materials Handling Australia managing director Frank Espig has resigned after more than 10 years in charge of the company's operations in Australia. Acting managing director Holger Thomas would lead the company until a replacement was found, a statement said.
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10. TAX BREAK SEES JUNGHEINRICH PROFIT JUMP
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HAMBURG, Germany -- Jungheinrich AG's nine-month sales to the end of September have risen five percent to EUR1.14 billion (USD1.01 billion) from EUR1.09 billion (USD960 million) for the same period in 2000.

Dow Jones International News said net profit rose to EUR25.6 million (USD22.9 million) from EUR3.1 million (USD2.73 million), reflecting lower tax exposure for the current business year. Jungheinrich said it expects full-year 2001 sales to rise by five percent.
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11. NACCO AND WANDALEX SIGN POLAND DEAL
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WARSAW, Poland -- Forklift distributor Wandalex SA will be the exclusive Yale dealer in Poland and the Ukraine after signing a cooperation agreement with Nacco Materials Handling Group.

Wandalex is also the Polish dealer for Daewoo. The three-year Nacco deal was signed on November 14. The deal, which both companies expect will generate annual turnover of USD14.6 million, can be extended if both parties agree, said a report by the Polish News Digest.
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12. WATTS TYRES NOW MANUFACTURED IN BRAZIL
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LORENA, Brazil -- Watts Industrial Tyres has signed a joint-venture agreement with Souza Pinto Industria e Comercio de Artefatos de Borracha Ltda to manufacture and distribute Watts solid industrial tyres in Brazil.

Watts, market leader in the United Kingdom, had appointed distributor Ernani de Souza Pinto Filho in 1998. Mr Souza Pinto Filho's company had been producing a limited range of solid tyres, complemented by imported Watts product.

The joint-venture agreement to allow Mr Souza Pinto Filho's company to manufacture Watts tyres was negotiated because currency fluctuations in Brazil made imports less profitable. A new manufacturing facility, based in Lorena, began production in October.

Watts sales and marketing director Carlo Piccirilli said he would soon travel to Brazil to meet new customers.

"Brazil is the largest market in South America, with huge potential. It is an important strategic manufacturing location for the domestic and other markets," he said.

Meanwhile, Watts has launched www.industrialtyre.com, a revamped website that includes its popular tyre selector tool which helps customers match tyres to their requirements.

Further site developments will include an online ordering facility for distributors, possibly this month, a live help desk and daily rubber news.
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13. MHI TO CONCENTRATE ON FORKLIFTS
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SAGAMIHARA, Japan -- Mitsubishi Heavy Industries (MHI) plans to free capacity and focus on building forklifts and diesel engines.

The Nikkei Weekly said MHI and Caterpillar had agreed to transfer compact construction machinery manufacturing to their joint venture, Shin Caterpillar Mitsubishi.

By the end of 2004, compact bulldozers, wheel loaders and other products will be moved from MHI's Sagamihara plant to Shin Caterpillar's facility in the same city.

The Nikkei report said MHI would use the additional capacity to concentrate on diesel engines and forklifts, which had seen growing demand.
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14. MAJOR MATERIALS HANDLING EXHIBITIONS AMALGAMATE
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BIRMINGHAM, United Kingdom -- Turret RAI, organiser of the International Materials Handling Exhibition (IMHX) in March, which attracted 16,000 visitors to Birmingham's National Exhibition Centre, has announced that IMHX 2004 will encompass the International Handling & Storage Exhibition (IHSE).

The move follows Turret's acquisition of DMG World Media's materials handling division. IMHX show director Paul Michael said IMHX was now "unquestionably" the event for materials handling industry players to exhibit their products and services.
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15. PALFINGER PROFITS DOWN
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VIENNA, Austria -- Austrian forklift and crane maker Palfinger, which manufactures the Crayler portable forklift, has reported reduced profits for the nine months to September, but says it expects the full year to be its second best in history.

Reuters said Palfinger's gross earnings fell 1.2 percent to 32.6 million Euro (USD28.77 million) "due to the difficult economic environment", though sales surged 10.3 percent to 257.1 million Euro (USD226.78 million). Net profit also slipped to 19.3 million Euro (USD17.03 million) from 20 million Euro (USD17.65 million)in the same period last year.
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16. SUMI TURNS 20
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ADELAIDE, Australia -- Australian battery electric forklift company Sumi is celebrating 20 years in forklift manufacturing.

Originally known as Big Joe when it entered the market in 1981, Sumi has sold more than 5000 forklifts throughout Australia and Asia.

The company, which says it is the only Australian-owned forklift manufacturer in the country, has factory-owned dealerships throughout Australia, and is expanding internationally through exports to China, East Timor, Singapore, New Zealand, India, Fiji and Indonesia.
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