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

  • Liebherr continues to grow despite tough trading conditions
    January 6, 2017
    Liebherr is weathering the current financial situation rather better than some other firms, having seen turnover increase 9.8% to €4.4 billion in the first half of 2012, compared with the previous year. According to Andreas Boehm, a member of the board of directors at Liebherr, turnover for the mining and construction operations saw gains of 7.7% to €2.84 billion in the first half of 2012, compared with 2011. He continued, “Turnover from our earthmoving machinery increased 14.4% to €1.07 billion.” However,
    Read More
  • Liebherr continues to grow despite tough trading conditions
    November 28, 2012
    Liebherr is weathering the current financial situation rather better than some other firms, having seen turnover increase 9.8% to €4.4 billion in the first half of 2012, compared with the previous year. According to Andreas Boehm, a member of the board of directors at Liebherr, turnover for the mining and construction operations saw gains of 7.7% to €2.84 billion in the first half of 2012, compared with 2011. He continued, “Turnover from our earthmoving machinery increased 14.4% to €1.07 billion.” However,
    Read More
  • Beijing's record-breaking BICES 2011
    April 4, 2012
    BICES 2011 equipment exhibition attracted unprecedented levels of visitors, according to the organisers. With China's construction market booming and the world's largest infrastructure investment programme in full swing, the country is seeing a huge growth in demand for new machines. Manufacturers from inside the country as well as international firms are keen to boost sales in the country and develop market shares. As a result, promotion is a key issue and all manufacturers, Chinese and international, are
    Read More
  • Beijing's record-breaking BICES 2011
    February 15, 2012
    BICES 2011 equipment exhibition attracted unprecedented levels of visitors, according to the organisers. With China's construction market booming and the world's largest infrastructure investment programme in full swing, the country is seeing a huge growth in demand for new machines. Manufacturers from inside the country as well as international firms are keen to boost sales in the country and develop market shares. As a result, promotion is a key issue and all manufacturers, Chinese and international, are
    Read More

Highlighted Content