Dear business partners,

Our parent company, KION Group, and Weichai Power, a leading manufacturer of trucks and components in China, have agreed on a long-term strategic partnership. In accordance with this, Weichai Power will acquire a 25 percent share in the KION Group and a majority interest of 70 percent in KION's hydraulics business.

Weichai Power operates in three business areas: drive units (engines, gearboxes, axles), commercial vehicles and automotive electronics and parts. The company is a global market leader for high-speed and high-performance engines and heavy-duty gearboxes and has 42,000 employees worldwide. The latest figures show an annual revenue of EUR 7.5 billion.

By forging this partnership, the KION Group is gaining another long-term investor alongside KKR and Goldman Sachs Capital Partners, thereby considerably strengthening its capital base. The partnership opens up great potential for growth for both companies, as the products, technologies and the regional market positions complement each other extremely well.

Linde Hydraulics will continue as an independent company and will benefit greatly from the expanded product portfolio and from excellent access to the Asian markets from now on.

There is a long-term supplier agreement for hydrostatic drives regarding use in forklift trucks with the recently founded Linde Hydraulics. Linde Material Handling will continue to have exclusive access to these technologies in the future. Significant core competencies relating to trucks, such as the development and production of truck axles, will not transfer to the new company but will remain with Linde Material Handling.

Linde Material Handling will consistently take advantage of all opportunities for further development and global growth arising from the new partnership between our umbrella company, KION, and Weichai Power, and will therefore continue to have access to all the key technologies that make our products so unique.

Our business relations remain unchanged. As an independent brand within the KION Group, Linde Material Handling will continue to be your trusted partner in every respect as far as forklift trucks and warehouse technology is concerned.

We look forward to continuing our relationship in the spirit of mutual collaboration and trust.

Yours sincerely

Theodor Maurer
Chief Executive Officer Linde Material Handling