KION CEO Gordon Riske

KION Group AG aims to become a global industry leader through its Strategy 2020 initiatives, with objectives that include harnessing global potential more effectively, and focusing on growth, profitability, resilience and capital efficiency.

Other objectives in its group strategy are a double digit EBIT margin and a significantly higher return on capital.

"We want to become one of the best capital goods companies in every aspect," CEO Gordon Riske said when the company presented its 2013 annual report this month.

The KION Group will prioritise the fast-growing Asian and north American markets and plans to boost the competitiveness of its global brands (Linde, Still and Baoli) and regional brands (Fenwick, OM Still and Voltas) by boosting use of shared modules and platforms.

To increase US market share, KION says it will continue to expand its US product portfolio and offer additional services. It will draw on sufficient capacity reserves at an existing South Carolina plant, using product platforms developed within the company, and with the aid of an extensive existing dealer network. In its home market of Europe, the group says it will "continue to benefit from its position as the undisputed market leader" in the premium segment.

"The core element of our Strategy 2020 is to make even better use of KION Group's strong global position and cross-brand synergies," Riske said. "The basis for this is our successful integrated business model with its high proportion of service business, as well as our multi-brand strategy."

Under Strategy 2020, multi-brand research and development teams will cooperate more closely at KION level in growth markets, using shared worldwide platforms that are mainly developed at KION Group's Chinese R&D centre. Meanwhile, the focus in Europe will be on shared, cross-brand modules.

The strategy also includes strengthening the group's resilience during economic downturns.

Thomas Toepfer, KION Group chief financial officer, said: "We want to remain clearly profitable, even in times of crisis."

He says the group wants to grow its profits and generate EBIT margins above 10%, like other companies in the capital goods sector with comparable integrated business models.

The service business, which accounts for more than 40% of group revenue, will contribute to that objective. About 1.2 million trucks built by KION brand companies are now in use worldwide.