 KION Group CEO Gordon Riske |
KION Group says it is paying down its debt and is getting ready for a medium-term flotation.
The world's second-largest forklift manufacturer plans to overtake Toyota Industries Corp as the market leader by 2015, but is yet to set a date for an initial public offering.
"I don't think 2011 is realistic," KION CEO Gordon Riske told the ICFW Frankfurt business journalists' club last week.
"But 2015 would be a very long time (to wait)," Riske said.
He said the company is focused on improving its operating business in 2011 and 2012 and repaying debt in 2013 and 2014.
KION is owned by private equity firms KKR and Goldman Sachs. They acquired the forklift manufacturer for EUR4 billion (USD5.63 billion) in 2006 after the Linde Group sold its materials handling business to focus on industrial gases.
KION spokesman Michael Hauger tells
Forkliftaction.com News "business is strong in all markets where KION is present".
He stresses that the group is not in specific talks to acquire any company and would only look at opportunities which would contribute to growing its global and sales network. "[The network consists of] more than 1,200 locations worldwide, probably the densest network in our industry."
In the near term, KION plans to start production at a second manufacturing plant in South America in 2012. The Still and Linde internal combustion forklift plant is being built in Sao Paulo, Brazil. KION's existing plant in Rio de Janeiro manufactures Still and Linde warehouse equipment.
KION South America CEO Frank Bender says the industrial truck market in Central and South America more than doubled in size in 2010 compared to 2009, with a total sales volume of about 45,000 units. Internal combustion forklifts account for two out of every three forklifts sold. KION South America will employ up to 180 people in Sao Paulo to grow its marketshare in the region.
KION South America already employs 300 people and local sales departments of the Still and Linde brands have offices in the greater Sao Paulo area.