"The forklift had toppled forward and crushed him.
"There were loads of emergency rescue vehicles but they all cleared off pretty quickly.
"I think we would have been killed instantly.
"It's just horrendous. Forklifts are just such dangerous things. It is very sad and I feel for his family."
Another eyewitness, from a nearby yard, did not wish to be named, but said: "He was the truck driver and a forklift was unloading a generator.
"For some reason, he was standing between the forklift and the truck when the generator crushed him. He had nowhere to go and would have died quickly. You would certainly hope so.
"It shouldn't have happened. He should never have been standing there when unloading such a heavy item."
Detective Colin Baillie of Christchurch South Police confirmed the man was not an employee of TransDiesel Limited but worked for a transport contracting firm engaged by the company.
He said: "Initial enquiries indicate that the man was transporting a generator between two sites.
"On arrival at the second site, while attempting to move the machinery it appears he has become trapped between the truck and the generator, and he has died at the site.
"The incident has been referred to the Department of Labour."
A spokesman for St John ambulance said: "We were alerted at 11.51am to this incident. We sent an ambulance, the rapid response vehicle and the shift manager to the scene.
"The incident involved a person, a male, who had been crushed by machinery.
"The person was deceased at the scene.
"Due to the nature of this incident, this is now a police matter."
Police said the name of the deceased, and the company he works for, have not yet been released as next of kin are still to be notified.
TransDiesel officials refused to comment, adding that a staff meeting was to be held.