Germany-based material handling equipment manufacturer Jungheinrich has established a joint venture with Anhui Heli, a subsidiary of Chinese industrial vehicle producer Anhui Forklift Group.
The companies said the 50/50 joint venture would market Jungheinrich’s and Heli’s material handling equipment rental business on the Chinese market, using Jungheinrich’s long-standing expertise in the rental market and Heli’s network in the country.
The companies said the joint venture, with registered capital of CNY200 million (US$30 million), would be the largest material handling equipment rental business in China.
They said the joint venture would be headquartered in Shanghai, and operations are scheduled to begin in the middle of 2016, subject to regulatory approval.
Jungheinrich chairman Hans-Georg Frey said, “Jungheinrich has more expertise in material handling equipment rentals than any other player in the field of intralogistics. Paired with Heli’s expansive sales network, we will create the largest rental company on the Chinese market as a result of the joint venture.”
The companies said the joint venture encompassed Jungheinrich’s and Heli’s entire product portfolios – from simple hand pallet trucks to heavy-duty counterbalanced trucks – and would be exclusively responsible for material handling equipment rentals in China going forward.
They said the joint venture’s expansive network with nationwide coverage in China guaranteed short reaction times, while rental periods offered were flexible, ranging from one day to 60 months.
Lars Brzoska, member of the Board of Management in charge of sales at Jungheinrich, added, “The customer benefits from a significantly expanded product range, bespoke rental solutions and a strong and reliable service network. This partnership is a major step for Jungheinrich en route to strengthening its position in China substantially and achieving its growth targets.”