Anhui Heli, the Chinese forklift maker, will enter three of Thailand's neighbours after achieving good sales in the Thai market.

The company yesterday signed a memorandum of understanding authorising Siam Sun Autosales, the Thai-owned importer and distributor of Chinese machinery brands, to distribute Heli forklifts in Laos, Cambodia and Myanmar.

The Heli brand is also available in Singapore, Malaysia, Indonesia and the Philippines through its own distributors in each market.

Zhang Dejin, Anhui Heli's chairman, said the company believes strongly in Thailand's potential, given the country's overall strength and robust growth in the industrial sector.

Heli forklifts entered the Thai market four years ago through Siam Sun.

After its success in Thailand, Anhui Heli decided to forge closer ties with its Thai partner by distributing forklifts in next-door countries.

"We believe in our Thai partner's expertise and capability to tap growing demand for industrial vehicles in Thailand and its neighbours," said Mr Zhang.

Akradech Wongpituchroj, Siam Sun's managing director, said dealers will be appointed to handle the sales and marketing of Heli forklifts in Laos, Cambodia and Myanmar, where altogether 50 forklifts are expected to be sold this year.

The forklift market is expected to grow sharply this year as firms continue to replace machinery battered by last year's floods.

In addition, the hike in the daily minimum wage will encourage industries to use more machinery, replacing high-wage labourers.

Siam Sun plans to double its forklift sales to 400 units this year through its seven established dealers.

Mr Akradech forecast overall new forklift sales in Thailand of 2,500 units this year.

Customers still prefer cheaper used forklifts to new ones, with 7,000 and 8,000 used ones changing hands each year, he said.

"We'd like to tell users that second-hand forklifts are not worth the trouble, as they entail more expenses," said Mr Akradech.

Mr Zhang expressed interest in assembling forklifts in Thailand if sales in the Thai market and those of its neighbours reach 3,000 units a year.

Thailand's high economic growth, well-developed infrastructure and abundant human resources have encouraged investment.