Chinese firm Weichai has made a strategtic move in Germany with Kion

A landmark deal has been agreed between Shandong Heavy Industry Weichai Power and the German Kion Group. This is claimed to be the largest financial investment in Germany to date made by a Chinese company. Kion is a leading international producer of forklift trucks and under the terms of this deal, it will work with Weichai Power to develop a common platform for the machines for sale worldwide. The Chinese investment will also boost manufacturing capability within Europe. Weichai Power is investing €738 mil
January 18, 2013 Read time: 2 mins
A landmark deal has been agreed between Shandong Heavy Industry 2731 Weichai Power and the German 6945 KION Group. This is claimed to be the largest financial investment in Germany to date made by a Chinese company. Kion is a leading international producer of forklift trucks and under the terms of this deal, it will work with Weichai Power to develop a common platform for the machines for sale worldwide. The Chinese investment will also boost manufacturing capability within Europe. Weichai Power is investing €738 million in the deal, of which €467 million will be used to purchase a 25% stake in Kion. A further €271 million will be used by Weichai Power to purchase a 70% majority stake in the hydraulic business of Linde Material handling.

Weichai Power becomes the prime investor in Kion, following KKR and 3347 Goldman Sachs. At the same time, Weichai Power holds 70% majority holding of Linde Hydraulic, and the new company is mainly constituted by the hydraulic business stripped from Linde Material Handling. The remaining 30% shares are still held by Linde Material Handling.

Through this deal, Weichai Power becomes the global leader in forklift and high-end hydraulic sectors. At the same time, the hydraulic control system technology being acquired will make Weichai Power a leader in technology. Meanwhile Kion will benefit from Weichai Power’s strength in the Asian market as well as its supplier system in China and Europe. The hydraulic business will be operated and managed as an independent new company - Linde Hydraulic, over 1,400 employees all agreed to be transferred to the new company, and the products will still use the Linde trademark.

For more information on companies in this article

Related Content

  • New focus on hydraulics operations for Lonking
    January 6, 2017
    Lonking widening its product range and developing its hydraulics components operations - Mike Woof reports Shanghai-based Lonking is best known as a major supplier of wheeled loaders, and as one of the market leaders in China. The company has followed a path of diversification in recent years however, significantly widening its product range and with its excavator business in particular proving successful and taking a substantial share of the Chinese home market. Other Lonking products rolling off the produ
    Read More
  • Firmly in control with communications
    May 6, 2020
    An important step has been made with regard to improving data communications between construction machines
    Read More
  • Beijing's BICES reflects China's economic growth
    February 27, 2012
    The busy BICES show reflects China’s booming infrastructure investment and growing economy – Mike Woof reports. The recent BICES trade show in capital Beijing was extremely busy, with high visitor attendance levels and crowded aisles. The interest in the event strongly reflects the country’s massive infrastructure growth, which continues to develop. The construction equipment business has been identified as a key economic priority by the Chinese Government, with manufacturers being offered numerous incentiv
    Read More
  • New machines competing in ADT market
    February 19, 2013
    All-wheel-drive trucks for the Chinese market - Mike Woof reports. One noticeable development at the bauma China exhibition in Shanghai in late 2012 was the proliferation of ADT models. Doosan and Volvo showed some of their latest ADT variants alongside their latest excavators and are keen to highlight the benefits of ADTs for use on sites where traction or grade may be an issue for rigid trucks or on/off highway haulers. However Caterpillar chose to highlight its off-highway rigid trucks at bauma China, as
    Read More

Highlighted Content