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

  • Auction success in Europe
    February 29, 2012
    Euro Auctions claims its latest sale in Germany has been a major success.
    Read More
  • Wirtgen targets developing markets
    November 28, 2012
    The Wirtgen Group is committed to expanding its presence in “increasingly important” emerging markets, according to joint group president Stefan Wirtgen. Speaking alongside his brother and co-Wirtgen Group president, Jürgen Wirtgen, at a press conference during the recent Wirtgen Mineral Technology Days 2012 event attended by over 1,400 industry professionals from more than 60 countries, Stefan Wirtgen said: “The markets in the last few years have shifted and emerging markets are playing an increasingly imp
    Read More
  • Rolls-Royce restructuring its Power Systems business unit
    August 6, 2019
    Rolls-Royce is restructuring its Power Systems business unit, while the firm also claims strong financial performance.
    Read More
  • The Fayat Group is growing its US operations
    March 9, 2017
    The Fayat Group is steadily developing its operations and its presence in the North America market. President Jean-Claude Fayat explained the firm’s position at CONEXPO-CON/AGG 2017. The high value of the US$ against the euro has been of benefit to the group, he said: “For sure it’s helping to improve our margins.”
    Read More

Highlighted Content