KION Group begins work on new China plant

“China has quickly recovered from the coronavirus and as one of the fastest-growing markets globally, it plays a key role in our strategy,” said Gordon Riske, Chief Executive Officer at KION GROUP AG, who took part in the groundbreaking ceremony in Jinan via video link. He noted that according to the World Industrial Truck Statistic (WITS), the Chinese economy accounts for roughly 30 percent of the global industrial truck market and that – based on KION’s Group estimates – this share is set to increase.

Unlock growth opportunities and capitalize on the increasing trend in electric vehicles

The Group aims to significantly extend its product portfolio through the new plant to unlock growth opportunities in the value segment and capitalize even more on the greater electrification trend of industrial trucks in China. The Group has established a new company for this purpose, where KION has a 95-percent stake with Weichai Power, the largest investor in the KION Group, having the remaining 5 percent. The equity investment by Weichai Power, which is also based in Shandong Province and manufactures powertrain systems, commercial vehicles and vehicle electronics, ensures that the KION Group has a strong local presence in the region.

“This historic moment once again underscores our close and collaborative work relationship between KION Group and Weichai Power,” noted Xuguang Tan, the chairman and CEO at Weichai Power, at the event. “We began our productive and highly successful partnership in 2012 and the new Jinan plant is expected to be a further milestone in this growth strategy.”

“We believe that our highly automated plant, the new KION Value Competence Center adjacent to it and the expansion of our sales and service network creates the ideal conditions to better serve our Linde Material Handling and Baoli customers in the fast-moving Chinese market and to respond more effectively to global demand in the value segment,” added CP Quek, member of the Executive Board of KION GROUP AG and Chief Asia Pacific & Americas Officer.

The new facility is planned to come on stream in 2022. On a site that covers almost 223,000m² – equivalent to more than 31 soccer fields – the Group is also building an innovative research and development center, training center and administrative offices next to an advanced production plant where industrial trucks will be manufactured for KION’s Linde Material Handling and Baoli brands.