Hitachi Construction Machinery Co. and Nissan Motor Co.'s planned forklift venture will pursue acquisitions in Japan and overseas in a bid to become one of the world's top three suppliers.

"Size matters," said Hidetoshi Shibata, managing director of government-backed Innovation Network Corp. of Japan, which will be the venture's largest shareholder. "There is also momentum toward consolidation in the industry."

He didn't name potential targets for the new company, which will be called UniCarriers Corp.

Warehouse equipment makers may have to unite as slower demand growth in China stokes concerns about overcapacity, Shibata said. Hitachi and Nissan agreed to merge their forklift businesses in November to speed expansion overseas and to better compete with Toyota Industries Corp. and Kion Group GmbH., the world's biggest makers.

UniCarriers, which will be formed this year, will initially maintain the TCM brand inherited from Hitachi Construction and the Nissan Forklift name, Shibata said. Toyota Industries, an affiliate of Toyota Motor Corp., is Japan's biggest forklift maker, ahead of a Mitsubishi Heavy Industries Ltd. and Nippon Yusoki Co. venture, and Komatsu Ltd.