KION Group pursues Strategy 2020

News Story
- 5 Feb 2015 ( #704 ) - Wiesbaden, Germany
3 min read
Theodor Maurer has left the management board of Linde Material Handling GmbH.
Theodor Maurer has left the management board of Linde Material Handling GmbH.
KION Group CEO Gordon Riske has taken over as CEO of the group's brand companies Linde Material Handling and STILL GmbH.

This is because the previous CEOs Theodor Maurer and Bert-Jan Knoef are leaving the executive board of KION Group AG and the management boards of Linde MH and STILL respectively.

"The KION Group is expecting record results for 2014 that will fulfill its ambitious guidance. Mr Knoef and Mr Maurer played a major part in this successful development of the KION Group," says John Feldmann, chairman of the group's supervisory board.

The group aims to shorten its decision-making processes, leverage cross-brand synergies more effectively and drive profitable growth by implementing a streamlined management structure.

"In 2015, we aim to create the management structures that will enable the KION Group to successfully implement its Strategy 2020. This includes being able to make decisions faster," Riske says.

"We are looking to further improve our cost and competitive position and to accelerate growth in all markets, including our European home market."

The company plans to increase its capital efficiency and to become more resilient to better cope with future economic crises.

KION says it will be able to more quickly leverage cross-brand synergies by integrating research and development activities even more closely.

The pooling of knowledge and expertise throughout the group should help to ensure the KION brands - Linde, STILL, Baoli, Fenwick, OM STILL and Voltas - have access to the best possible technical solutions in regard to components, modules and platforms.

The aim is to create specific products that are optimally tailored to different markets and segments around the world. Riske says: "In the KION Group's future organisational structure, there should be an even stronger focus on the requirements of our customers.

KION says it will optimise existing plants and bring production closer to its customers as part of its Strategy 2020 (Forkliftaction.com News #660). In November 2014, the group held a groundbreaking ceremony at its new EUR12 million (USD16 million) plant in Pilsen in the Czech Republic. Production is slated to commence in 2016 (Forkliftaction.com News #676).

Group spokesman Frank Brandmaier says the group plans further expansion in emerging markets "by scaling up its Chinese plants in Xiamen (Linde) and Jingjiang (Baoli)".

"In addition, the company plans a gradual scale-up of its plants in Summerville (USA) and Indaiatuba (Brazil).

KION also wants to further strengthen its sales and service organisation. According to Brandmaier, the group's "robust integrated business model" provides the basis for the company's business success.

"Customer services, truck rentals used trucks and spare parts together contribute more than 40% of revenue. There are around 1.2 million KION trucks in use around the globe, forming a broad basis for a strong and integrated service business," he explains.

"It is a clear goal of the KION Group's 2020 strategy to leverage this potential further, e.g. by exploiting services growth opportunity in developing markets, for example by service contracts, the rental fleet or used truck business."

At the same time, the group aims to expand its service offering in its core European markets, including the optimisation of existing service offerings, new offerings in automation and fleet management, and the expansion of used truck refurbishment centres.

According to KION, the group will be able to more quickly leverage cross-brand synergies by integrating research and development activities even more closely.

"In 2015, by pursuing our well-proven multi-brand strategy, we will be taking the next major step towards the KION Group becoming a highly effective, globally successful capital goods company."
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