Growing in China

KION on its Presence and Investment in the Chinese Market

KION was one of the first Western companies to invest in China in the areas of production, development, sales, and services – and with great success. The brands of the KION Group have had a presence in the Chinese logistics industry for many years. Today, based on annual turnover, the group is not only the leading foreign forklift truck and warehouse technology provider in China, but also the number three supplier in the country overall.

Why Investment in the Chinese Logistics Market Is Important to KION

China continues to be one of the fastest growing markets on the planet. According to the “World Industrial Truck Statistics” ( WITS ), China made up roughly 40% of the world market for forklift trucks in 2020. We at KION expect this trend to continue and for the strong demand for ultra-modern and efficient forklift trucks to keep on growing. The KION Group wants to unlock this potential with its products and significantly bolster its position as one of the leading intralogistics equipment companies in China. That is why the Chinese market plays such a key role in our growth strategy. Our close and trusting collaboration with our Chinese anchor investor Weichai is essential for us to be even more successful on the Chinese market.

How the KION Group Came to China

The KION subsidiary Linde Material Handling started production in China over 25 years ago in Xiamen, Fujian province, initially as part of a joint venture before taking full ownership in 1999. The KION Group has since opened a second plant for warehouse technology – mainly from the Linde MH brand – near our location in Xiamen. And Linde MH China has set up a distribution company called “ Shaanxi KION Intelligent Warehousing Equipment Co., Ltd. ” in Xi’an, the capital of the central Chinese province of Shaanxi. Alongside Linde MH , the KION brands Baoli and Dematic have also established themselves on the Chinese market. Baoli has been part of the KION Group since 2009 and manufactures industrial trucks at its site in Jingjiang, Jiangsu province. Dematic , which is a world-leading provider of smart supply-chain software and automation solutions, has been supplying the Chinese market from its base in Suzhou, Jiangsu province, since 2006.

Current Development of the Production Sites in China

The KION Group already has four production sites in China, where it employs more than 4,500 staff. In Jinan, we are currently building a new, ultra-modern plant for counterbalanced trucks which will start operation in 2022. A new research and development center, the “ KION Value Competence Center ”, which will have global responsibility for the value segment, will also be part of the new site. Investment is expected to total roughly 100 million euros, making it one of the biggest investments ever made by a global material handling company in China. Furthermore, KION is building a new plant for supply chain solutions in close proximity to the soon-to-be-completed plant for counterbalanced trucks. This new plant for supply chain solutions will manufacture racks for Dematic’s multi-shuttle system, welded components for driverless transport systems, and conveyor belts and conveyor systems, among other products. Construction is expected to begin this year, and the plant is set to go into operation in Q1 of 2023. A total of almost 40 million euros is expected to be invested in this pioneering project. With the expansion of our product portfolio, we want to seize the opportunities for growth in the value segment and take further advantage of the electrification of industrial trucks in China. We expect this to strengthen our position as one of the leading global intralogistics companies in China.

KION Harnesses the Power of WeChat, Douyin, and Its Own In-House Apps in China

In China, mobile digital technology has made in-roads into nearly all spheres of life and digital marketing has grown significantly in the B2C sector. Online platforms have become a key channel of communication and sales. The KION Group always places the needs of its customers first, so we are making extensive use of e-commerce websites, digital formats , and social media in China as well. The aim is to create added value for our customers and provide them with a convenient shopping experience, nurture our customer relationships, and at the same time expand our marketing strategy. In order to achieve this, we have strengthened our presence on online platforms like WeChat and Douyin (TikTok) , and opened up e-commerce channels such as Linde Mall and JD Mall, and thus begun to explore the opportunities that live e-commerce presents for us. Linde MH (China) has also developed its own app solutions for smartphone users, so that customer services such as maintenance and repair requests and fleet checks can be handled in a simpler and more targeted manner.