Kion Group Begins Work on New Plant in China
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 is expected to enable the global logistics equipment supplier to extend its product portfolio for industrial trucks in one of the world’s most important material handling markets at a cost of approximately 100 mio. €. The 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 Gordon Riske, Chief Executive Officer of Kion Group, who took part in the ground-breaking ceremony in Jinan via video link. He noted that according to the World Industrial Truck Statistic (WITS), the Chinese economy accounts for around 30 % of the global industrial truck market and that – based on Kion’s Group estimates – this share is set to rise.
The Group aims to extend its product portfolio through the new plant, unlocking growth opportunities in the value segment and capitalizing even more on the trend toward greater electrification of industrial trucks in China. The Kion Group has established a new company for this purpose, where Kion has a stake of 95 % 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.
Source: Kion Group