DGAP-News: KION GROUP AG / Key word(s): Miscellaneous
KION Group paves the way for further growth in Europe with investment
programme (news with additional features)
09.07.2014 / 10:01
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KION Group paves the way for further growth in Europe with investment
programme
Further increase of competitiveness in the premium segment of the growing
European market
By 2021, a total of EUR83 million will have been invested in the further
optimisation of production processes at KION's core plants in Aschaffenburg
and Hamburg
New plant in Czech Republic is planned for economy and value trucks for
eastern and southern European markets
KION CEO Gordon Riske: "Alongside the growth markets, Europe remains the
focus of our capital expenditure."
Wiesbaden, 9 July 2014 - The KION Group is paving the way for further
profitable growth with a long-term capital expenditure programme as the
European market for forklift trucks and warehouse technology gathers pace.
In total, Linde Material Handling's core plant in Aschaffenburg is set to
invest roughly EUR60 million through 2021 and around EUR23 million is
earmarked for the core STILL plant in Hamburg over the same period. The
further optimisation of production processes and internal logistics will
make the core plants run by KION's two premium brand companies even more
competitive and cost-efficient and will create the capacity for medium-term
growth. This should enable the group to gain maximum benefit from global
growth markets as well as the resurgent European premium-product market.
As the world's largest specialist supplier of industrial trucks and
associated services, the KION Group also aims to meet the market demand for
vehicles in the value and economy segment in Europe even better and more
efficiently. To this end, the company is planning to build a new plant near
PilzeÅ in the Czech Republic, primarily to supply the markets in eastern
and southern Europe. The ground-breaking ceremony is scheduled for October
and production - initially of existing warehouse technology products - is
planned to start in early 2016. Around EUR12 million will be invested in
setting up the plant, where about 200 people will initially be employed.
"Expanding our leading position across the whole of Europe"
"The capital invested in our European plant structure shows that our home
market of Europe continues to play a key role in our growth strategy -
alongside the USA and emerging markets such as China," said KION Group CEO
Gordon Riske. "Optimised production processes in our core plants and the
new plant in the Czech Republic will not only play an important part in
maintaining the leading position of the KION Group in western and eastern
Europe, but will also help us to extend our reach by better meeting the
needs of the value and economy segments."
The core Linde MH and STILL plants in Aschaffenburg and Hamburg remain
centres of excellence for their flagship IC and electric trucks and reach
trucks in the premium segment. The objective of the capital expenditure
programme is to enhance the KION Group's medium-term profitability by
making the production of core products more efficient. Around 2,600 people
work at the Linde site in Aschaffenburg and around 2,100 work at STILL's
core plant in Hamburg.
The purpose of the new plant in the Czech Republic is to help the KION
Group to supply locally produced trucks for the non-premium segments in
eastern and southern Europe, enabling the group's growth to outstrip the
market. The group's plan is to manufacture value and economy trucks as well
as smaller warehouse-technology products tailored precisely to meet
regional needs in these market segments. The current generation of Linde
reach trucks will also be produced in the Czech Republic.
Further optimised production processes, proximity to customers and the
consistent exploitation of economies of scale form part of the KION Group
Strategy 2020 that was launched in March. By 2020, the KION Group aims to
have closed the gap with its biggest international rival, and at the same
time to have expanded its position as the most profitable player in its
sector. The company also intends to make more efficient use of capital
employed and to increase its resilience to provide an even better cushion
against economic crises.
The company
The KION Group - comprising the six brands of Linde, STILL, Fenwick, OM
STILL, Baoli and Voltas - is the largest manufacturer of industrial trucks
in western and eastern Europe, 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 a
market leader in India in industrial trucks. The KION Group is present in
more than 100 countries and, in 2013, employed over 22,000 people and
generated revenue of EUR4.49 billion.
Disclaimer
This document and the information contained herein are for information
purposes only and do not constitute a prospectus or an offer to sell or a
solicitation of an offer to buy any securities in the United States or in
any other jurisdiction.
This release contains forward-looking statements that are subject to
various risks and uncertainties. Future results could differ materially
from those described in these forward-looking statements due to certain
factors, e.g. changes in business, economic and competitive conditions,
regulatory reforms, results of technical studies, foreign exchange rate
fluctuations, uncertainties in litigation or investigative proceedings, and
the availability of financing. We do not undertake any responsibility to
update the forward-looking statements in this release.
Further information for the media
Michael Hauger
Head of Corporate Communications
Tel.: +49 (0)611 770 655
michael.hauger@kiongroup.com
Frank Brandmaier
Head of Corporate Media Relations
Tel.: +49 (0)611 770 752
frank.brandmaier@kiongroup.com
Further information for investors
Frank Herzog
Head of Corporate Finance
Tel.: +49 (0)611 770 303
frank.herzog@kiongroup.com
End of Corporate News
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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=QKDWUMBLAK
Document title: Press release PDF to download
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09.07.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
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Language: English
Company: KION GROUP AG
Abraham-Lincoln-Str. 21
65189 Wiesbaden
Germany
Phone: +49 (0)611 770-0
Fax: +49 (0)611 770-690
E-mail: info@kiongroup.com
Internet: www.kiongroup.com
ISIN: DE000KGX8881
WKN: KGX888
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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277246 09.07.2014
DGAP-News: KION Group paves the way for further growth in Europe with investment programme (news with additional features)
| Source: EQS Group AG