A Great Move - Weichai Power Speeds Up Global Strategy
2012-10-15 Source：www.chinabuses.org
Summarize：In September 2012, Weichai Power Co., Ltd. (“Weichai Power”) and KION Group (“KION”), one of the second to none industrial forklift manufacturers in the world and a global leader in the hydraulic technology signed a strategic cooperation agreement in Ji’nan, Shandong Province. Thereafter, Weichai Power will be another anchor investor and strategic partner of KION following KKR and Goldman Sachs. The cooperation means the two companies will cooperate closely in material handling and hydraulic drive technology.
www.chinabuses.org: In September 2012, Weichai Power Co., Ltd. (“Weichai Power”) and KION Group (“KION”), one of the second to none industrial forklift manufacturers in the world and a global leader in the hydraulic technology signed a strategic cooperation agreement in Ji’nan, Shandong Province. Thereafter, Weichai Power will be another anchor investor and strategic partner of KION following KKR and Goldman Sachs. The cooperation means the two companies will cooperate closely in material handling and hydraulic drive technology.
As another milestone investment following successful acquisition of Moteurs Baudouin SA (a 130-year old French company) in December 2008 and Italian Ferretti Yachts Group in January 2012, this investment also boasts as the hugest direct investment of Chinese enterprises in Germany as well.
Under the terms of the agreement, total investment of Weichai Power will amount to 738 million euro, 467 million euro of which will be used to acquire 25% shares of KION by the way of capital increase, and the remaining 271 million euro will be used to acquire the majority shares (70%) of Linde Hydraulics under KION Group.
Upon accomplishment of the trading, Linde Hydraulics will run hydraulic business independently, while KION will keep its strategic shares in this corporation. Hydraulic products of Linde will continue to use Linde Hydraulics as the trademark. Cooperation with Weichai Power will facilitate Linde Hydraulics to expand, adapt to the ever changing market, and confront with the more and more fierce competition in a better way. At the same time, by taking advantage of complementary products and technologies of the two parties, Linde Hydraulic will be able to draw on untapped potential to explore new market, especially the booming Asian market. Among its business plans, Linde Hydraulics is to transfer the existing hydraulic businesses in Nilkheim, Aschaffenburg to a neighboring new factory and increase capacity of other hydraulic product manufacturing factories.
Weichai Power and KION Group are now consulting with each other on future cooperation in other several fields such as components and auxiliaries. It is learned that annual capacity of KION’s forklifts will be 250,000 in future five years and auxiliaries for related products such as engines of Weichai Power will be further stimulated. With respect to material handling, Weichai Power’s hydraulic department will sign a long-term procurement and supply agreement with the forklift departmentof Linde, a subsidiary brand of KION Group.
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