Weichai Power and KION Group further expand their long-term strategic partnership
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KION GROUP GmbH /
Weichai Power and KION Group further expand their long-term strategic
partnership
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* China Development Bank to provide financing of up to EURO 500 million
Berlin, 26 May 2013 - Weichai Power Co., Ltd. ("Weichai Power"), a leading
Chinese automotive and equipment manufacturer and a part of Shandong Heavy
Industry Group ("SHIG") and KION Holding 1 GmbH ("KION Group"), a leading global
supplier of industrial trucks and related services, take steps to further their
long-term strategic partnership. The partnership, so far the largest direct
Chinese investment in Germany, was first announced on 31 August 2012 and
implemented on 27 December 2012.
In the presence of Dr. Angela Merkel, the Chancellor of the Federal Republic of
Germany, and Li Keqiang, the Prime Minister of the People's Republic of China,
representatives of the two partners and of China Development Bank, China's
largest outbound investment and financing bank, signed a framework collaboration
agreement on Sunday. The three parties agreed that Weichai Power and KION Group
will intensify their cooperation through mutually agreeable means and that China
Development Bank will provide a full range of financial services including
financing of up to EUR 500 million to support the expanded collaboration.
Weichai Power, through its Luxembourg based subsidiary Weichai Power
(Luxembourg) Holding S.à.r.l., currently holds a 25% stake in KION Group and has
a call option to increase its shareholding in KION Group to 30% on a fully
diluted basis upon the completion of a potential future IPO of KION Group.
Weichai Power holds a further option to acquire an additional 3.3% stake in KION
Group from Superlift Holding S.à.r.l., Luxembourg, a company controlled by funds
advised or controlled by Goldman Sachs and KKR.
Tan Xuguang, Chairman and CEO of Weichai Power said: "We are very happy that
China Development Bank will provide the financing to support Weichai Power's
investment in and collaboration with KION Group. Our equity investment and call
options for more shares in KION Group will demonstrate our strong commitment to
the common goals of KION Group and Weichai Power. During the past months our
strategic partnership has got off to an encouraging start."
Gordon Riske, CEO of KION Group, said: "This highly welcome expansion of our
long-term strategic partnership will be an additional catalyst for our strategy
to continuously expand our forklift truck business in the growing Asian markets.
The partnership with Weichai Power and the spirit the two partners share provide
exciting opportunities to leverage on our successful growth strategy. Our teams
have already started to implement a close strategic collaboration."
For Weichai Power, venturing into the world's leading forklift and high-end
hydraulic fields has brought about clear improvements to the structure of its
corporate product division, as well as to its upgrading of enterprise products.
In addition, there is greater rationalisation of its corporate global strategic
business structure.
For KION Group, the strategic partnership with Weichai Power provides additional
access to key Asian growth markets as it will leverage Weichai Power's strong
local roots and relationships. KION Group will also have access to a larger
supplier base throughout China and Europe.
In 2012, Weichai Power has invested a total of EUR 738 million, including EUR
467 million for the acquisition of a 25% stake in KION Group through a capital
increase and EUR 271 million paid to Linde Material Handling GmbH to acquire its
70% majority stake in Linde Hydraulics. Proceeds from this transaction further
strengthened KION Group's capital structure.
About Weichai Power
Weichai Power Co., Ltd.(2338HK/000338SZ) is a leading automotive and equipment
manufacturing group in China. It operates in four main business segments: power
assembly (including engines, gear boxes and axles), commercial vehicles,
hydraulic control systems and automobile electronics and parts, encompassing one
of the most comprehensive product offerings in the industry. Weichai Power has
the highest sales volume globally in high-speed heavy-duty engines and heavy-
duty gearboxes. Its spark plug products enjoy the largest market share in China,
and its heavy-duty axle products are also a top brand in China. The company also
ranks No. 4 in heavyduty trucks in China. The company was listed on the Hong
Kong Stock Exchange in 2004 and on the Shenzhen Stock Exchange in 2007. In
2012, Weichai Power generated a revenue of RMB 48 billion (about USD 7.6 billion
or EUR 5.8 billion) and recorded a net profit of RMB 3 billion (about USD 477
million or EUR 361 million). At the end of 2012, Weichai Power had approximately
40,000employees globally.
About Shandong Heavy Industry Group
Shandong Heavy Industry Group is one of the most comprehensive leading
industrial equipment manufacturers in China, with two complete industrial chains
of the highest quality commercial vehicles and construction machinery. The four
listed companies providing such product and service offerings are Weichai Power
(2338HK/000338SZ), Weichai Heavy Machinery (000880SZ), Yaxing Motor Coach
(600213SH), and Shantui Construction Machinery (000680SZ), which is the largest
bulldozer producer in the world. In 2012, the Group's combined revenue was RMB
98.8 billion (about USD 15.7 billion or EUR 11.9 billion) and profit was RMB
3.4 billion (about USD 0.54 billion or EUR 0.41 billion), and had 65,500
employees worldwide.
About KION Group
The KION Group - comprising the six brands Linde, STILL, Fenwick, OM STILL,
Baoli and Voltas - is Europe's market leader in industrial trucks, the global
number two in the industry and the leading non-domestic supplier in China. The
Linde and STILL brands serve the premium segment worldwide. Fenwick is the
largest supplier of material handling products in France, while OM STILL is a
market leader in Italy. The Baoli brand focuses on the economy segment, and
Voltas is one of the two market leaders in India. The KION Group employed more
than 21,000 people and generated revenue ofEuro 4.73 billion in 2012.
Disclaimer Weichai Power
This press release contains forward-looking statements involving known and
unknown risks, uncertainties and other factors, many of which are outside the
control of the Weichai Power Co., Ltd. ("Weichai Power"), are difficult to
predict and may cause future developments to differ significantly from assumed
developments as expressed or implied in the forward-looking statements in this
press release. Any liability (including in respect of direct, indirect or
consequential loss or damage) of Weichai Power with respect to the information
contained in this press release is expressly and specifically disclaimed. This
press release does not purport to contain all of the information that may be
required to evaluate any transaction or proposed transaction, and any recipient
hereof should seek its own legal, accounting and other relevant professional
advice. Weichai Power does not assume or undertake any obligation to update or
revise, and it should not be expected to update or revise, this press release,
or any forward-looking statements or any other information contained herein,
whether as a result of new information, future events or otherwise.
Disclaimer KION Group
This press release contains forward-looking statements involving known and
unknown risks, uncertainties and other factors, many of which are outside the
control of KION Group ("KION"), are difficult to predict and may cause future
developments to differ significantly from assumed developments as expressed or
implied in the forward-looking statements in this press release. Any liability
(including in respect of direct, indirect or consequential loss or damage) of
any member of KION with a view to the information contained in this press
release is expressly disclaimed. This press release does not purport to contain
all of the information that may be required to evaluate any proposed
transaction, and any recipient hereof should seek its own legal, accounting and
other relevant professional advice. No member of KION is under any obligation or
expectation to update or revise this press release, including forward-looking
statements or any other information contained herein, whether as a result of new
information, future events or otherwise.
For further information please contact:
Michael Hauger
Head of Corporate Communications, KION Group
Tel.: +49 (0) 611.770-655
michael.hauger(at)kiongroup.com
Frank Brandmaier
Head of Corporate Media Relations, KION Group
Tel.: +49 (0) 611.770-752
Email frank.brandmaier(at)kiongroup.com
Dai Lixin
Secretary of Board,Weichai Power Co., Ltd.
Tel.: +86 536 2297 068
dailx(at)weichai.com
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http://hugin.info/137240/R/1704649/563666.pdf
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Source: KION GROUP GmbH via Thomson Reuters ONE
[HUG#1704649]
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Datum: 26.05.2013 - 18:06 Uhr
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News-ID 263497
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