Kalmar is scaling production of heavy-duty electric cargo handlers from its Shanghai plant, announcing four new orders to close out the second quarter. The company began building the 45-ton ERG450 electric reach stackers at the facility in 2023, aiming to serve customers across Asia more efficiently.
That manufacturing bet appears to be paying off. By producing the massive machines locally, Kalmar brings the heavy equipment closer to key port and logistics customers in the region, reducing shipping costs and delivery times compared to exporting from its traditional European factories.
The orders come as ports and logistics hubs increasingly look to electrify their fleets to meet emissions targets. Kalmar's electric reach stackers offer a zero-emission alternative to diesel-powered models, though the company faces competition from other manufacturers also developing electric material handling equipment.
Scaling production of these heavy-duty electric vehicles remains challenging. Battery range, charging infrastructure, and upfront costs still pose hurdles for widespread adoption in port operations. Kalmar has not disclosed pricing or delivery timelines for the new orders.
The Shanghai factory represents a strategic pivot for the Finnish company, which has historically manufactured in Europe. Local production in China allows Kalmar to better compete for Asian market share while testing the viability of manufacturing electric heavy equipment outside its home continent.