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

  • Chinese firm Shantui is developing a long term business strategy for growth
    January 6, 2017
    Chinese manufacturer Shantui is expanding its operations with a more diverse range of products – Mike Woof reports Chinese manufacturer Shantui is reorganising its operations to cope with the current tough market conditions, taking a long term view that is geared for future growth. The firm has expanded its operations significantly, broadening its product line away from its reliance on the bulldozer business where it has its origins. Demand for concrete equipment has been strong in China and the firm saw t
    Read More
  • Asphalt plant operators offer fuel for thought
    August 28, 2013
    Asphalt plant operators across continental Europe are said to be increasingly turning to pulverized lignite to fuel or partially fuel production, while leading plant manufacturers have been busy closing key deals with customers in Russia, Bangladesh and Switzerland. Guy Woodford reports. Financially astute asphalt plant operators in Europe are said to be increasingly using pulverized lignite, also known as brown coal, from Germany to fuel or partially fuel production. Under the product name ‘Lignite Energ
    Read More
  • UK: Kier Group completes purchase of Mouchel
    June 11, 2015
    In the UK, Kier Group has completed its purchase of Mouchel, the infrastructure repair and maintenance provider. The deal worth just more than €364 million (US$405 million) strengthens Kier's position in the British highways maintenance and management sector. A €467 million rights issue was used to finance the deal.
    Read More
  • Engine firms delivering innovative solutions for reducing emissions and fuel consumption
    January 6, 2017
    Solutions for Tier 4 Final emissions regulations dominated Conexpo 2014, with many firms showing off their options of DOC, DPF and SCR after-treatments. Deutz, while staying with an SCR-only solution, took a more unusual approach on its high horsepower V6 12litre and V8 16litre engines. Both get a dual SCR after treatment system to meet Tier 4 Final emission standards.
    Read More

Highlighted Content