KION Group intends to harness more of the potential of the Asian market

2013-12-06 / 03:00:02

  • Systematic expansion of the sales and service network
  • New entity, KION South Asia, lays solid foundations
  • 20 years of KION's Linde brand in China

Xiamen, 6 December 2013 - Having now spent 20 successful years in China, KION GROUP AG wants to further increase its share of the market in Asia and is therefore systematically expanding its sales and service network. 'By setting up KION South Asia, our new entity in Singapore, the KION Group has put in place the organisational structure that will enable it to unlock the full potential of the market in south and south-east Asia,' said Gordon Riske, Chief Executive Officer of the KION Group, on Friday in Xiamen, southern China. The KION Group, headquartered in Wiesbaden, Germany, is the world's largest specialist supplier of forklift trucks, warehouse trucks and associated services.

'Our many years of experience in China are also benefiting us in other parts of Asia,' he emphasised during the celebrations to mark 20 years of KION's Linde brand in China. 'Our goal is to carry on expanding our market share in Asia and to acquire additional customers across the region. To this end, we are constantly extending the local sales and service networks of the KION Group's global brands Linde, STILL and Baoli.'

Riske also highlighted the strategic partnership with Weichai Power, which was formed about a year ago. 'Our strategic alliance is strengthening both partners. It offers us the opportunity to break into new areas of business and to leverage synergies for our mutual benefit,' stated the CEO.

Weichai Power's involvement with the KION Group and Linde Hydraulics is the largest direct Chinese investment in Germany to date. The company, which is listed on the Hong Kong Stock Exchange, invested a total of EUR738 million. The strategic anchor investor then increased its stake in the KION Group from 25 per cent to 30 per cent at the end of June 2013 in connection with KION GROUP AG's IPO.

During the first nine months of 2013, the KION Group brand companies in China sold a record 12,577 trucks, up by 8 per cent compared with the corresponding period of 2012. The revenue generated in this period came to EUR237.8 million. A total of around 3,200 people are employed by the KION Group in China, of whom more than 1,200 work in manufacturing and approximately 1,500 work in sales and service.

After 20 years in China, KION GROUP AG has become by far the largest international supplier, with two of its own local research and development centres, two manufacturing plants and a sales and service network encompassing more than 100 outlets nationwide. Moreover, thanks to its Linde brand, it is the leading international manufacturer in the premium segment and is market leader for electric forklift trucks and warehouse trucks. The volume segment is served successfully by the Baoli brand. The KION Group's total share of the Chinese market for industrial trucks is approximately 7 per cent.

Globally, the KION Group employs more than 21,000 people. In 2012, the KION Group generated revenue of approximately EUR4.56 billion (adjusted for the sale of the hydraulics business). It is represented in more than 100 countries and its global market share is around 15 per cent. KION GROUP AG has been listed on Deutsche Börse's Frankfurt Stock Exchange since June 2013 and was admitted to the SDAX stock index in September.

The company follows a successful multi-brand strategy. Linde and STILL serve the premium segment worldwide while Baoli focuses on the economy segment. Fenwick is the material-handling market leader in France, OM STILL is a market leader in Italy and Voltas is one of the two market leaders in India. The KION brands' comprehensive product portfolio offers the optimum, most cost-effective solution for every customer in every region.

Further information for the media

Michael Hauger
Head of Corporate Communications
Tel.: +49 (0)611 770 655

Frank Brandmaier
Head of Corporate Media Relations
Tel.: +49 (0)611 770 752

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