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

  • Cold milling popular for road materials recycling
    March 2, 2012
    Milling techniques remain one of the most widely used recycling methods
    Read More
  • Acquisition move
    July 28, 2015
    Swedish producer Thomas Concrete Group has acquired assets belonging to Coastal Concrete, a US company that operates 10 concrete plants in Georgia and South Carolina. This move will develop the position of the Thomas Concrete Group on the US East Coast between Atlanta and Raleigh. Coastal Concrete is one of the leading producers of ready-mixed concrete in several major cities along the Atlantic coast of Georgia and South Carolina. The acquisition will develop the firm’s strong position in these states.
    Read More
  • Cold milling popular for road materials recycling
    July 4, 2012
    Milling techniques remain one of the most widely used recycling methods Well-proven, cold milling techniques remain one of the most widely used methods for materials recycling in road construction. Milled road materials can be cleaned up and re-used in both asphalt and concrete highway construction. German firm Wirtgen has long dominated the market for road milling machines and has the largest share of the sector (as well as the broadest product range), although other firms based in Europe and the US are be
    Read More
  • Europe-Asia road link
    February 9, 2017
    The governments of China, Kazakhstan, Belarus and Russia have finally approved a project for the building of a new transcontinental road, which will connect Asia and Europe. The new route is much-needed and will speed the transportation of cargo between the two continents, according to Maxim Sokolov, Russia’s Minister of Transport. The idea for the building of the road was first proposed by the European Commission around 2005. It was prompted by the ever growing volume of trade between the EU and Chin
    Read More

Highlighted Content