DGAP-News: KION Group expands business activities in China

2009-01-15 / 11:30:00

KION Group expands business activities in China

  • Joint venture company established with the Baoli Companies
  • KION is the biggest foreign industrial truck producer in China
  • KION Baoli complements KION's product range in the economy segment
  • KION Group's fourth brand

Wiesbaden (Germany) / Jingjiang (China), January 15, 2009 - The KION Group GmbH, Jingjiang Baoli Forklift Co., Ltd and Jiangsu Baoli Group Co., Ltd (Jingjiang Baoli Forklift and Jiangsu Baoli Group are referred to as the 'Baoli Companies') have agreed to establish a joint venture company in China for developing, producing, marketing and servicing forklift trucks in the economy segment. The Baoli Companies' forklift truck operations are to be integrated into the newly founded company, KION Baoli (Jiangsu) Forklift Co., Ltd ('KION Baoli'). KION Baoli, in which the KION Group has a 60 percent stake, is based in Jingjiang, Jiangsu Province. KION Baoli will start operations on January 16, 2009 and will be part of the KION Group.

As the KION Group's fourth brand, Baoli with a low-cost manufacturing base will focus on the economy segment worldwide, which so far has not been covered by the KION Group brand portfolio. The product range of the Baoli Companies includes diesel/LPG and electric trucks with load capacities of 1 to 10 tonnes. Exports, particularly to high-growth markets in Asia, Central and Eastern Europe and Latin America, accounted for half of the companies' turnover. In recent years, the Baoli Companies have grown significantly above the market growth rate. KION Baoli will have branches, sales offices and dealerships in more than 40 cities in China, making it an ideal fit with the existing Linde network in China. KION Baoli will employ a total workforce of some 500. The Baoli Companies' founder Hui Yin will be the General Manager of KION Baoli.

Gordon Riske, the KION Group CEO, commented on the establishment of KION Baoli: 'We are proud to welcome Baoli, one of the most successful forklift producers in China, into the KION family of brands. Baoli adds to our brand portfolio in the economy segment, which is important for the new, high-growth markets worldwide. The integration of Baoli will make the KION Group the biggest international forklift truck producer in China and the joint venture company marks a significant step toward strengthening our position in the global economy segment of our industry.'

Hui Yin, Managing Director of the Baoli Companies and General Manager of KION Baoli said, 'I am very happy to be able to work with KION Group and to generate the synergies leveraging on each others strengths.'

Ching Pong Quek, Chairman of KION Asia underlined: 'KION is a strong global partner and will enable Baoli's forklift truck business to further pursue its strategy of expansion in China and in other rapidly growing Asian markets. With KION's experience and support, the Baoli brand will continue to expand its product range, particularly in the warehouse equipment sector.'

The KION Group has had a wholly-owned subsidiary, Linde (China) Forklift Truck Corp Ltd in Xiamen, since 1993. With more than 1,700 people in 80 locations all around China, Linde (China) is the Asian R&D, production, sales and servicing base of Linde Material Handling. The Linde brand in China operates mainly in the higher-end forklift truck segment but has also developed vehicles especially for the Chinese market. Linde (China) provides a complete range of forklift trucks and professional services and solutions as well as logistic design and consultancy. The company also manufactures components and trucks for export.

In total, the KION Group in China, including KION Baoli operations, will employ over 2,200 people, making it the third biggest industrial truck company in the Chinese market measured by unit sales.

The Companies

The KION Group, with its Linde, STILL and OM brands, is the European market leader in industrial trucks and the global number two in the industry. In 2007, it employed over 21,000 people and generated revenue of more than EUR4.3 billion.

The Baoli Companies are privately owned corporations founded in 1993 operating in the electric motor, metallic components and forklift truck sectors. In 2007, the Group employed more than 2,500 people and generated revenue of approx. EUR70 million.

For further information please contact

Michael Hauger
Head of Communications and Investor Relations, KION Group
Tel.: +49 (0)611 770 655
Email: michael.hauger@kiongroup.com

Frank Kopfinger
Head of Investor Relations, KION Group
Tel.: +49 (0)611 770 220
Email: frank.kopfinger@kiongroup.com


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