Hi Karait


The points you make are fair but there still is going to be a large change in the market for heavy forklifts globally the market including container handling forklifts and reach stacker over 18,000 kg is around 3,000 units. In this market Linde is classed as a premium manufacturer , with a higher end price with the new companies entering the market mainly from China Sany , heli and european market Newcomer OTO backed by a large steel company these trucks will enter at a more value price end of the market. This will not only have a effect on Linde but also koneCranes SVE Truck CVS and others in the same area. Kone cranes will be in some way protected by having other products to offer such as cranes but the others will have problems. NACCO will be in a way protected by their strong sales in the US. Cargotec has seen this all ready and moved a lot of production to Poland to be more competitive Linde being based in the UK is now un competitive on price and can only compete with trucks built at their plant in China. These truck will be the same quality as other manufactures and customers won't class them as a premium product. Linde has a image to keep with there smaller end of equipment that is also classed as a premium product so won't want this image down grading. Also the only way Linde can keep the Uk operation going is to make loses on this Goldman Sachs and KKR who own KION have said there is no more capital to be injected and have made quite a large loss on the sale all ready this year. They are looking to find a buyer for KION this year and can't have a loss making division in the group. Goldman and KKR sold 75% of Linde hydraulic business this is were all the tech to the Chinese these are not just going to let Linde have this they are going to sell this in the open market. Linde have seen how junghienrich closed there big truck operation down in 2000 Boss Trucks and have grown as a warehouse manufacture with a counter balance range up to 9,000kg.



I'm sure if this was a decision being made by Linde that they would keep it going but it is not its a decision being made by Goldman and KKR and they want to stop the losses so it will go
Goldman and KKR know they will never make any money now on KION and want to just sell and get out but first they can't have any loss making divisions and that is why Linde heavy trucks will go. Linde invested over 20 mill us dollars in there big truck range and are loosing money in this field so they will never get a ROI on this project they will have to right this Off. To now compete in this area you are going to have to show customers a real benefit of your equipment this goes for all manufactures including Cargotec. The new companies coming in will attract customers on price and as their equipment is the same as what is on offer how can Linde , Cargotec , Konecranes and the others charge a higher price for effectively
the same equipment



Kion are to allow Weichai Power Co. Ltd. to grow there stake to 33% and are looking to IPO next year this will have a massive impact on the heavy truck division and will see the end of Linde production in the UK