KION enters strategic partnership with Chinese manufacturer
German industrial vehicle and material handling equipment manufacturer KION Group has agreed to a strategic partner with Chinese manufacturer EP Equipment. The German company says that this will give it greater strength in the “fast-growing market for entry-level, light-duty warehouse equipment,” and made the announcement as the deal was signed last Thursday. KION is looking to strengthen its offering in this product range worldwide – but it’s also aware that partnering with a Chinese company is a great in-road into China itself.
Only three weeks into the year, and KION’s share price is already 7% up
SOURCE: Yahoo Finance
The partnership will see KION take a minority stake in EP Equipment, and focus on “joint product development and supply chain synergies,” according to the companies’ press release. The companies expect the deal to close this year, and say that it will “make both parties more competitive in terms of their product offerings.”
KION’s CEO, Gordon Riske, made the following statement at the agreement signing in Anji, China: “We are delighted to enter into this strategic partnership with EP Equipment. It will allow us to extend our product offering to a much wider range of customers. The cooperation will further strengthen our position in the booming warehouse equipment market.”
Meanwhile, KION’s chief Asia Pacific officer, and member of the executive board, Quek Ching Pong, highlighted the strategic importance of the deal as a route into China, saying: “EP Equipment has been growing steadily in China and globally, especially in the entry-level warehouse segment, driven by its strong customer focus and its innovative and competitive product range. By entering into this partnership with EP Equipment, KION will further strengthen its position as a leading provider of electric-powered material handling equipment.”
He Jinhui, EP Equipment’s founder and chairman, also expressed his satisfaction with the deal. Speaking at the same ceremony, he told the press: “This is a historic moment for EP Equipment. I am looking forward to our new partnership with the KION Group, which will allow us to leverage each other’s strengths and capitalize on market opportunities in China and around the world.”
Dominion holds KION Group in its Global Trends Managed Fund.
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