[Photo by Hyundai Construction Equipment Co.]

Hyundai Construction Equipment Co., a unit of South Korea’s Hyundai Heavy Industries Group, will produce small- and medium-sized forklifts for overseas markets at Zhejiang UN Forklift in China to meet its $100 million revenue target by 2025.

Hyundai Construction Equipment announced Thursday that it signed an original equipment manufacturer (OEM) contract with Zhejiang UN Forklift in China.

Under the contract, the Korean company will outsource production of 2 to 3.5-ton forklifts in 10 models to Zhejiang UN Forklift, and sell them in China as well as other overseas markets including Southeast Asia and Europe.

[Photo by Hyundai Construction Equipment Co.]

They also agreed to collaborate on upgrading products and production facilities.

Located in Zhejiang province, southeastern China, Zhejiang UN Forklift is capable of producing 10,000 small- and medium-sized forklift trucks annually.

With Chinese OEM products, Hyundai Construction Equipment aims to generate $100 million in revenue by 2025.