DGAP-News: New KION plant in South America to manufacture IC trucks

2011-04-04

New KION plant in South America to manufacture IC trucks

Wiesbaden/São Paulo, 4. April 2011 - Construction is set to start on the KION Group's second production plant in South America, which will manufacture industrial trucks for the KION brands STILL and Linde. From spring 2012, KION South America will manufacture IC trucks with a 2.5-tonne load capacity at this new facility in São Paulo. Construction work at the newly acquired site is due to begin in the very near future. KION's existing plant in Rio de Janeiro manufactures warehouse equipment for STILL and Linde.

'South America is undoubtedly one of the world's most important growth markets', said Frank Bender, CEO of KION South America. The market for industrial trucks in Central and South America more than doubled in size in 2010 compared to 2009, with a total sales volume of around 45,000 units. The construction of a second plant is therefore a significant step in KION's further expansion in South America, where it is already extremely active, especially in Brazil, Chile and Argentina. The IC-truck segment is the most important in the region, with IC trucks accounting for two out of every three industrial trucks sold. 'By building a plant specially geared towards the manufacture of IC trucks, we will be even better able to satisfy customer demand locally', explained Mr. Bender. KION South America intends to employ up to 180 people in São Paulo, with the stated aim of continually increasing KION's market share in South America. The plant in São Paulo will manufacture trucks for the Brazilian market - however, a future expansion of production facilities is already planned for further South American markets.

São Paulo is a suitable location for the new facility because of its proximity to existing sales offices and the STILL and Linde customer base, and as Bender outlined: 'In order to acquire new customers from across the whole of South America and fully exploit this market's potential, we will further expand our sales and service network and invest in well-stocked parts warehouses and highly qualified technicians'.

The Group
The KION Group, with its Linde, STILL, Fenwick, OM, and Baoli brands, is the European market leader in industrial trucks and the industry's global number two. KION also holds leading positions in the growth markets of China, Eastern Europe and South America. In 2010, it employed some 20,000 people and generated revenue of more than EUR3.5 billion.

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

Contact

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Michael Hauger

Senior Vice President Corporate Communications

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Frank Grodzki

Senior Director Corporate External Communications & Group Newsroom

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