 KION's Xianmen head office |
KION Group is expanding its business in China and has begun work on the construction of an additional plant for the production of counterbalance trucks in Jinan in Shandong Province. The project will enable the global logistics equipment supplier to extend its product portfolio for industrial trucks in one of the world's most important materials handling markets at a cost of approximately EUR100 million (USD119 million).
KION Group intends to create over 800 jobs by 2025 with its new plant in eastern China.
"China has recovered quickly from the coronavirus crisis and as one of the fastest-growing markets worldwide, it plays a key role in our strategy," said KION CEO Gordon Riske, who took part in the ground-breaking ceremony in Jinan via video link. He noted that according to the World Industrial Truck Statistics (WITS), the Chinese economy accounts for around 30% of the global industrial truck market and that - based on KION Group estimates - this share is set to rise. "We want to harness the potential of this important market even more effectively and expand our position as a leading supplier of intralogistics equipment in China."
The Group aims to significantly extend its product portfolio through the new plant, unlocking growth opportunities in the value segment and capitalising even more on the trend toward greater electrification of industrial trucks in China. KION has established a new company for this purpose, where KION has a 95% stake and Weichai Power, the primary investor in the KION Group, has 5%. 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.
The new plant is expected to come on stream in 2022. On a site covering almost 223,000 sqm, the group is also building an innovative research and development centre, a training centre and administrative offices next to an advanced production plant where industrial trucks will be manufactured for KION's Linde Material Handling and Baoli brands.
The KION Group currently employs over 4,000 people in China.