KION Group starts construction of its new plant in China

The KION GROUP AG is further expanding its business in China and has begun the construction of an additional plant for counterbalance forklifts in Jinan (Shandong Province). This will allow the company to expand its product portfolio for material handling equipment in one of the world’s most important markets. The expected investment volume for this forward-looking project is around 100 million euros.

(Frankfurt Main/Jinan) The KION Group intends to create more than 800 new jobs at its new eastern Chinese location by 2025. “China has quickly recovered from the Corona crisis, remains one of the fastest-growing markets in the world, and plays a key role in our strategy,” said Gordon Riske, CEO of KION GROUP AG, who participated in the ceremonial groundbreaking in Jinan via video conference. According to the “World Industrial Truck Statistic” (WITS), the Chinese economy already accounts for around 30 percent of the global market for material handling equipment, he emphasized. And the trend is expected to rise, according to KION Group’s assessments.

Benefiting from E-Mobility

With the new plant, the company also aims to significantly expand its product portfolio to capitalize on growth opportunities in the value segment and to benefit even more from the ongoing electrification of material handling equipment in China. To this end, KION Group has established a new company. It holds a 95 percent stake in it, while Weichai Power, the anchor investor of KION Group, holds a 5 percent stake. With the involvement of Weichai Power, which is also headquartered in Shandong Province and manufactures drive engines, commercial vehicles, and automotive electronics, KION Group ensures a strong local presence in the region.

“This historic moment once again underscores the close and trusting partnership between KION Group and Weichai Power,” said Xuguang Tan, CEO of Weichai Power, during the ceremonial event. “Since 2012, we have been on a productive and very successful path together. We expect the new plant in Jinan to be another milestone on this growth trajectory.”

New Plant in Jinan

“We are convinced that with our future highly automated plant, the new connected ‘KION Value Competence Center’, and the expansion of our sales and service network, we will be able to create important conditions to serve the customers of our brands Linde Material Handling and Baoli in the dynamic Chinese market and the global demand in the value segment even better than before,” added CP Quek, member of the board of KION GROUP AG and Chief Asia Pacific & Americas Officer.

The new plant is expected to start operations in 2022. On an area of almost 223,000 m² – equivalent to more than 31 football fields – the company is building a modern production facility where material handling equipment of the KION brands Linde Material Handling and Baoli will be manufactured, as well as a modern research and development center, a training center, and an administrative area.

KION Group in China

The brands of KION Group have been present in China for many years, making the company not only the leading foreign forklift and warehouse technology provider in terms of revenue but also the number three within the country. Linde Material Handling started its production in China more than 25 years ago in Xiamen, Fujian Province, with a joint venture and took over the entire shares in 1999. In spring 2020, KION Group opened a second plant for warehouse technology equipment, mainly of the Linde brand, near its location in Xiamen. Baoli has been part of KION Group since 2009 and manufactures material handling equipment at its location in Jingjiang, Jiangsu Province. Dematic, a global leader in intelligent supply chain, software, and automation solutions, has been producing for the Chinese market in Suzhou, Jiangsu Province, since 2006. Currently, more than 4,000 employees work for the KION Group in China.

Photo: © KION Group