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

  • XCMG boosting capacity
    November 26, 2012
    Increased manufacturing capacity has been a key focus for XCMG in recent years, with the firm having committed to upgrading its production facilities. XCMG has invested heavily in new manufacturing capacity for its ranges of cranes and wheeled loaders and both the Heavy Machinery and Wheeled Loader divisions now have new factories. The heavy crane facility produces machines in the 90tonne category and above and all production moved to the new plant in 2012 as the old factory was too small. The new facility
    Read More
  • VDMA reports steady German equipment sector
    February 14, 2013
    Steady financial performance is claimed for the German equipment producers in 2012, according to the manufacturing association VDMA. The German construction equipment and building material machinery industry generated €12.5 billion in turnover during 2012 according to the latest results. Of this, construction equipment accounted for €7.9 billion, while €4.6 billion of business came from the building material, glass and ceramics machinery sector. This is a nominal decrease of around 1% compared to 2011. Afte
    Read More
  • Metso develops presence in China with acquisition
    September 27, 2013
    Metso has now completed its acquisition of a majority stake in Chinese construction equipment supplier Shaorui Heavy Industries. This is a significant move and will strengthen Metso’s presence in the Chinese construction market. Shaorui Heavy Industries (Shaorui), is one of the leading mid-market crushing and screening equipment producers in China. The move leaves Metso with a 75% holding in Shaorui and an option to purchase the remaining 25% in the future. The size of the deal has not been revealed however
    Read More
  • SDLG and Volvo CE are utilising a novel dual brand approach in key markets
    October 14, 2013
    SDLG and Volvo CE are adopting a dual brand approach – Mike Woof writes. Chinese firm SDLG and its European partner Volvo CE are working on a novel arrangement that will see the two companies use a dual brand marketing strategy. While the sales channels in these markets will remain distinct, some back office services and parts logistics will be shared, affording SDLG much greater customer support than offered by other Chinese exporters
    Read More

Highlighted Content