KION GROUP AGis continuing to pursue its strategy for growth in Asia Pacific (APAC) with the construction of a new plant for supply chain solutions in Jinan, China (Shandong province).

The plant will be adjoining to KION’s new counterbalance truck plant, which is nearing completion. The global intralogistics provider stated this milestone project will enable it to extend its product portfolio for warehouses and distribution centers in one of the world’s most important and dynamic material handling markets. The long-term expansion of business in APAC and China in particular plays a pivotal role in the growth strategy of the KION Group: In August 2020, the Group started construction of a new production facility for counterbalance trucks. This forklift truck facility is scheduled to be completed in early 2022.

The new factory for the Supply Chain Solutions segment will be used to manufacture Dematic Multishuttle racks, welded components for automated guided vehicle systems, and conveyor belts and systems. Construction of the plant will commence before the end of the year, with the site set to begin production in the first quarter of 2023. The production facility will cover an area of approximately 28,000 m² and a dedicated TechCenter for customer visits. Capital expenditure on this project is expected to amount to almost €40 million. The KION Group intends to create more than 300 new jobs by the end of 2024 with its second plant in Jinan in eastern China. Altogether, KION Group today has already 4,600 of its nearly 39,000 employees in China.

“China has recovered swiftly from the coronavirus crisis and remains one of the fastest-growing material handling markets in the world,” said Gordon Riske, CEO of KION GROUP AG. “For the supply chain solution market in APAC we anticipate an annual growth rate of 14 percent for the near future.

The market environment offers excellent opportunities for growth, KION believes, driven by strong ecommerce. According to a forecast published by eMarketer, in China €2.4 trillion in e-commerce sales will be generated this year. This corresponds to almost 57 percent of the global total. And it will become the first country in history to transact more than half of its retail sales digitally.

“As a manufacturer of warehouse technology and automation solutions, we benefit greatly from the e-commerce boom. We therefore want to make even better use of the potential of this important market and significantly expand our position as a leading supplier of intralogistics equipment in China,” added Hasan Dandashly, member of the Executive Board of KION GROUP AG and responsible for the Supply Chain Solutions segment.