Hyster-Yale signs deal to buy Chinese forklift firm Maximal

The remaining 25% share of the new company, which will be named Hyster-Yale Maximal Materials Handling Co. ("HY Maximal"), will be owned by current Zhejiang Maximal Forklift senior management through Y-C Hong Kong Holding Company.

Maximal was founded in 2006 and went to market under the Maximal and SAMUK brands. Maximal has nearly 600 employees, and its 133,000 square metre facility in the Lushan Industry Area near Hangzhou, approximately 200 miles southwest of Shanghai, has a current production capacity of 30,000 units.

The acquisition is a strategic action that is expected to expand the Company's low-cost, global manufacturing capabilities, develop access to competitive component sourcing, further strengthen Hyster-Yale's utility and standard product portfolio by adding a wider spectrum of products, and enhance the Company's presence in both the China market, as well as in the growing global utility and standard market segments.

Although Hyster-Yale has been in the China market for a number of years, the Company's market share has been limited and focused in the more premium segments. Maximal has achieved success in the utility and standard segments in this region, and this joint venture will allow Hyster-Yale to start reaching this expanded customer base.

This is especially important for strengthening Hyster-Yale's current China operations, which are operating on a scale below the level needed for long-term success.

For the year ended December 31, 2016, Maximal had revenues of approximately $66.3 million, with domestic and export volume of nearly 6,000 units. Bookings and revenues in 2017 have increased nearly 20% over 2016. 

The closing of the transaction, which is expected to take place during the first half of 2018, is subject to customary closing conditions and required regulatory approvals.

Following the closing, Maximal will be a subsidiary of Hyster-Yale, but is expected to continue to operate as a separate entity within Hyster-Yale's JAPIC segment, with its own management team and Board of Directors.

The move is not expected to have any implications for the UK market in the short term.

Briggs Equipment, the exclusive UK distributor for Hyster and Yale, will continue to supply the UTILEV brand in the UK. UTILEV is an entry level forklift brand manufactured in China under the stewardship of Hyster-Yale.

David Turner, marketing manager, Briggs Equipment UK says: "The UTILEV brand works really well for a section of our customer base and enables us to represent the Hyster-Yale Group range across all price and forklift specification levels."

Speaking more broadly about the Maximal acquisition, Turner adds: "The move makes great sense for an OEM wanting to enhance their presence in a low-cost manufacturing economy. I think it’s a positive for an ambitious company like Briggs to have an equally ambitious supplier. We’ve got some great brands on our portfolio and if they’re thriving then we’re thriving too."