Interview with KION CEO: It is very important for us to do business in China

"It is very important for us to do business in China." In an exclusive interview with reporters from China News Service, Rob Smith, CEO of KION Group, said that the rapid and exciting growth of the Chinese market makes it a very important market for the expansion of KION Group's business. Kaiao has a good growth plan in China in 2023.

China News Service reported that Kaiao Group is the world's leading supplier of industrial vehicles and supply chain solutions, and the largest overseas supplier of forklift and warehousing technology in China. By the end of 2022, Kaiao Group has sold more than 1.7 million industrial vehicles worldwide, with customers on six continents. At present, the total number of employees of Kaiao Group is about 41000, and the revenue in fiscal year 2022 will reach 11.1 billion euros.

Smith said that Kaiao has entered the Chinese market for 30 years. Its three global brands, Linde, Baoli and Dematic, have operations in China, covering production, sales and service networks.

Smith pointed out that expanding the Asian business plays a very important role in the growth strategy of Kaiao. China is the largest single market for industrial vehicles in the world, and is a very important part of the business strategy and business expansion of Kaiao.

According to the financial report of KAI Ao Group, globally, KAI Ao Group achieved a high order volume in fiscal year 2022, with an increase in revenue but a significant decline in profit. The supply chain was blocked and the sharp increase in material, energy and logistics costs put pressure on the main financial indicators. However, Smith said that in the Chinese market, Kaiao Group achieved positive growth in revenue and profit in fiscal year 2022.

Since 2012, Kaiao Group has established a successful partnership with its shareholders and Chinese enterprise Weichai Power. Smith said that this had a positive impact on Kaiao to maintain its position in the local market and expand its business in China. "KaiAo and Weichai Power have established a stable, professional and long-term economic cooperation relationship. This relationship can make full use of the synergy between Weichai Power and KaiAo, and also open the door for KaiAo to deeply explore the Chinese market."

Smith said, for example, during the epidemic, Kaiao's first forklift manufacturing factory in Jinan was completed in a record time and put into production ahead of schedule, which benefited from the cooperation with Weichai Power and the corresponding support from the government departments of Shandong Province and Jinan City.

At present, Kaiao has built five forklift manufacturing plants in Jinan, Xiamen, Jingjiang, Jinjiang and Zhangzhou, China, and has a supply chain solution factory in Suzhou, with more than 5000 Chinese employees. Smith said that there is still a new supply chain solution factory in Jinan, which is expected to invest 40 million euros. After completion in 2024, more than 300 new jobs will be created for the local. "It is very important for our strategy to expand our business in the world's largest material handling market. We are satisfied with our business in China."

Speaking of the voice that the German economy should reduce its dependence on China, Smith said that cooperation and business in China would be of added value to Kaiao Group. "We invest in production, research and development in China, and in sales and service networks where customers need them. It is very important for us to do business in China."

Smith told reporters that over the years, his company has always had a good business development in China. Since his first trip to China in 1995, every time he visited China, he was excited about China's innovative growth.

"China is a fast-growing and dynamic market." Smith expects to visit China many times this year. "We believe that the Chinese market will achieve good growth this year, and we have a good growth plan in China."