Gordon Riske, KION Group CEO

Global manufacturer KION has ended months of speculation about its plans to expand its presence in Asia with the announcement of a new joint-venture company with a Chinese forklift manufacturer.

KION and Baoli have formed KION Baoli (Jiangsu) Forklift Co Ltd to develop, produce, market and service forklifts for low-priced segments worldwide.

The announcement follows denials late last year of reports of KION's intentions to take a majority stake in the Chinese company (Forkliftaction.com News #387).

KION has a 60% stake in the new company that will be based in the Jiangsu province on the east coast of China. KION Baoli commenced operations on January 16 and will have branches, sales offices and dealerships in more than 40 cities in China.

Baoli manufactures diesel/LPG and electric forklifts with load capacities of 1 to 10 tonnes. Exports to Asia, Central and Eastern Europe and Latin America account for half of the company's turnover.

Gordon Riske, CEO of the KION Group, says the company is proud to welcome Baoli into the KION family. "Baoli adds to our brand portfolio in the economy segment, which is important for the new high-growth markets worldwide," he says. "The integration of Baoli will make the KION Group the biggest international forklift producer in China and the joint venture company marks a significant step toward strengthening our position in the global economy segment of our industry."

Hui Yin, managing director of the Baoli Companies and general manager of KION Baoli, says he is happy to be able to work with the KION Group.

Neither company would comment further on future plans. Michael Hauger, head of communications and investor relations for KION Group, says due to strategic reasons, KION does not want to elaborate beyond the press release.