South Korean construction machinery maker Hyundai Construction Equipment Co. on Tuesday said it will develop small-sized forklifts to be powered by hydrogen fuel cells.

The subsidiary of Hyundai Genuine Co. will team up with S-Fuelcell Co., a local hydrogen fuel cell maker, to commercialize the 1-3 ton forklifts by 2023, it said.

Hyundai Construction Equipment also said it developed 5-ton hydrogen fuel cell powered forklifts in 2020 in cooperation with Hyundai Mobis Co., South Korea's biggest auto parts maker.

Last month, Hyundai Heavy Industries Group set up its second subholding company Hyundai Genuine that has two construction equipment makers--Hyundai Construction Equipment and Doosan Infracore Co. -- under its wing.

The group completed a deal to take over Doosan Infracore last month from Doosan Group. (Yonhap)