KION Group Expands with Two New Plants in China

The KION GROUP AG had two reasons to celebrate today: the inauguration of its new plant for counterbalance forklifts in the Chinese city of Jinan (Shandong Province), where guests were also presented with the first forklift from the new plant, and the groundbreaking for an additional plant for warehouse technology and automation, including a Tech Center and state-of-the-art manufacturing nearby.

(Frankfurt/Jinan) “With the new facilities, the KION Group is consistently continuing its growth path in China and expanding its product portfolio in both operational segments in one of the world’s most important and dynamic material handling markets,” said Gordon Riske, CEO of the KION Group, who participated in the ceremonial event in Jinan via video conference. The total investment for the two forward-looking plants, as well as for an R&D and a Tech Center, amounts to approximately 140 million euros. The KION Group plans to create more than 1,000 new jobs in Jinan in the medium term. Already, more than 4,600 of the nearly 40,000 employees of the KION Group work in China.

“The new forklift plant in Jinan is a crucial step in our ‘Growing-in-China’ initiative. China offers excellent growth opportunities for us,” added CP Quek, a board member of KION GROUP AG responsible for the ITS business in the Asia Pacific and Americas regions. According to the ‘World Industrial Truck Statistics’ (WITS), the economy accounted for about 40 percent of the global market for industrial trucks in 2020 based on order intake. China remains one of the most important growth markets worldwide, Quek emphasized. “We want to better leverage the potential of this important market and significantly expand our position as a leading intralogistics company in China.”

Targeted Development in Asia Plays a Key Role

The targeted development of the business in Asia, particularly in China, plays a key role in the KION Group’s growth strategy: With the new plant for counterbalance forklifts, the company aims to significantly expand its product portfolio to capitalize on growth opportunities in the value segment worldwide and to benefit even more from the ongoing electrification of industrial trucks in China. On an area of nearly 223,000 m² – equivalent to more than 31 football fields – the company has established a modern production facility where industrial trucks of the KION brands Linde Material Handling and Baoli are manufactured, as well as a modern research and development center, a training center, and an administrative area. For this purpose, the KION Group has established a new company. It holds a 95 percent stake, while Weichai Power Co. Ltd., anchor investor of the KION Group, holds a 5 percent stake. With Weichai Power’s involvement, which is also headquartered in Shandong Province and manufactures drive engines, commercial vehicles, and automotive electronics, the KION Group ensures a strong local establishment in the region.

Manufacturing Important Products from Dematic

In the yet-to-be-constructed plant for the Supply Chain Solutions segment, important Dematic products such as the Multishuttle system will be manufactured in the future. Additionally, it is expected to support local research and development and help provide customers with access to new warehouse technologies. The automation solutions plant is set to commence operations in the first quarter of 2023. Alongside the approximately 28,000 m² production facility, a dedicated Tech Center for customer visits is also planned. For the supply chain solution market in the Asia Pacific region, the KION Group expects an annual growth rate of around 13 percent in the near future. “Dematic has undergone rapid development in China over more than 20 years.

E-Commerce Revenue of 2.4 Trillion Euros

As a manufacturer of warehouse technology and automation solutions, we are at the forefront when it comes to e-commerce solutions for our customers,” said Hasan Dandashly, board member of KION GROUP AG and responsible for the Supply Chain Solutions segment worldwide. The construction of the new plant is another important step in the business expansion of Dematic and the entire KION Group. According to eMarketer’s forecast, China is expected to achieve e-commerce revenue of around 2.4 trillion euros this year, accounting for nearly 57 percent of the global total. This will make it the first country in history to conduct more than half of its retail sales digitally. “We want to take advantage of this.”

Photo: © KION Group