Fig.: Kion

The Kion Group is celebrating the inauguration of its new plant for counterbalance forklifts in Jinan, where the first forklift from the new plant was presented, as well as the groundbreaking ceremony for the production of warehouse technology and automation, including a TechCenter in the immediate vicinity.

“With these new facilities, KION is consistently continuing its growth trajectory in China and expanding its product portfolio in both operating segments in one of the world’s most important and dynamic material handling markets,” said CEO Gordon Riske, who participated in the opening ceremony in Jinan via video conference. The total investment for the two state-of-the-art plants, as well as for an R&D and a technology center, amounts to approximately €140 million. The KION Group plans to create more than 1,000 new jobs in Jinan in the medium term. Currently, more than 4,600 of KION’s nearly 40,000 employees work in China.

“The new forklift truck plant in Jinan is a crucial step in our ‘Growing in China’ initiative. China offers excellent growth opportunities for us,” added CP Quek, member of the KION Executive Board and responsible for ITS business in the Asia Pacific and Americas regions. According to World Industrial Truck Statistics (WITS), China accounted for approximately 40 percent of the global market for industrial trucks in 2020, measured by the number of units ordered. Quek emphasized that China remains one of the most important growth markets worldwide. “We want to leverage the potential of this key market even more effectively and significantly expand our position as a leading intralogistics company in China.”

On an area of ​​almost 223,000 m² – equivalent to more than 31 football fields – the KION Group has established a modern production plant for manufacturing industrial trucks under the KION brands Linde Material Handling and Baoli, as well as a state-of-the-art research and development center, a training center, and an administrative area. The KION Group founded a new company for this purpose, holding a 95 percent stake, while Weichai Power Co. Ltd., the KION Group's anchor investor, holds a 5 percent stake. With the participation of Weichai Power, which is also headquartered in Shandong Province and manufactures drive systems, commercial vehicles, and automotive electronics, the KION Group is ensuring a strong local presence in the region.

The plant, yet to be built, will manufacture key Dematic products such as the Multishuttle system for the Supply Chain Solutions segment. It will also support local research and development and help provide customers with access to new warehouse technologies. The automation solutions plant is scheduled to begin operations in the first quarter of 2023. In addition to the approximately 28,000 m² production facility, a dedicated TechCenter for customer visits is also planned. The KION Group expects an annual growth rate of around 13 percent for the Supply Chain Solutions market in the Asia Pacific region in the near future. "Dematic has undergone rapid development in China over more than 20 years. As a manufacturer of warehouse technology and automation solutions, we are at the forefront when it comes to e-commerce solutions for our customers," said Hasan Dandashly, Member of the Executive Board of KION and responsible for the Supply Chain Solutions segment worldwide. The construction of the new plant is another important step in the business expansion of Dematic and the entire KION Group. According to eMarketer's forecast, will generate e-commerce sales of around €2.4 trillion this year, representing almost 57 percent of the global total. This will make it the first country in history to conduct more than half of its retail sales digitally. "We want to capitalize on this."

KION's brands have been present in China for many years. With these brands, the intralogistics group is the leading foreign supplier of forklift trucks and warehouse technology, and number three in China, based on 2020 revenue. Linde Material Handling began production in China almost 30 years ago in Xiamen, Fujian Province, with a joint venture, and KION acquired full ownership in 1999. In spring 2020, the KION Group opened a second plant near its Xiamen location, primarily producing warehouse equipment under the Linde brand. Baoli has been part of the KION Group since 2009 and manufactures industrial trucks at its Jingjiang, Jiangsu Province, location. Dematic, the most recent addition to the KION Group, has been producing forklift trucks for the Chinese and Asian markets in Suzhou, Jiangsu Province, since 2006.

At the end of 2020, almost 1.6 million industrial trucks and more than 8,000 installed systems from the Kion Group were in operation worldwide at customer sites of various sizes in numerous industries across six continents. The Group generated revenue of €8.3 billion in 2020.

www.kiongroup.com