KION Group has established a joint venture with the Baoli Companies to enhance its presence in China's economy segment of the forklift market.

Target Company Overview

The KION Group GmbH has formed a joint venture with Jingjiang Baoli Forklift Co., Ltd and Jiangsu Baoli Group Co., Ltd, collectively referred to as the 'Baoli Companies'. This partnership aims to establish KION Baoli (Jiangsu) Forklift Co., Ltd, specifically designed to develop, produce, market, and service forklift trucks within the economy segment. KION holds a majority stake of 60% in this newly formed entity, which is strategically located in Jingjiang, Jiangsu Province and will officially commence operations on January 16, 2009.

KION Baoli represents KION's fourth brand and is positioned to address the economy segment of the market that was previously not catered to by the KION brand portfolio. The product offerings of the Baoli Companies include diesel/LPG and electric forklift trucks with load capacities ranging from 1 to 10 tonnes. Notably, 50% of Baoli's sales come from exports, particularly targeting rapidly growing regions such as Asia, Central and Eastern Europe, and Latin America.

Industry Overview in China

The industrial truck market in China has seen significant growth in recent years, driven by an increase in manufacturing and logistics activities. The country has become the largest industrial truck market glo