Mitsubishi sells forklift division

TOKYO, Japan—Mitsubishi Heavy Industries (MHI) is divesting itself of its forklift business.

The Tokyo, Japan-based company has agreed to a complicated deal with Nippon Yusoki Co Ltd (known as Nichiyu) which is headquartered in Nagaokakyo City, Japan.

Mitsubishi will sell its forklift truck operations to Nichiyu, which will integrate the business with its own product line and operations. Nichiyu specializes in battery-powered, small and medium-size forklifts, material handling systems and other products for the domestic and Asian markets.

In return, Nichiyu will become a consolidated subsidiary of MHI, although a joint statement  from the company says Nichiyu will continue to operate independently from the parent company. MHI will gain both common shares (representing 49.4 percent of the voting stock of Nichiyu) and 64.75 percent of Nichiyu’s non-voting classified stock. The new arrangement is expected to be finalized in April 2013.

At this point, there is no word about what brand name will be used to represent the integrated product line. Currently, in addition to Mitsubishi-labeled trucks, the company offers material handling equipment under a variety of brands, including CAT, Rocla Oy, and Jungheinrich.