September 3, 2012, China’s leading automotive and equipment manufacturing group, Weichai Power Co., Ltd. (herein referred to as “Weichai Powerâ€), one of the world's leading manufacturers of industrial forklifts and the world leader in hydraulic technology - The German KION Group (hereinafter referred to as "KION") signed a strategic cooperation agreement in Jinan, Shandong Province. Weichai Power, following KKR and Goldman Sachs, became a new key investor and strategic partner of KION , and both parties will cooperate closely in the fields of material handling and hydraulic drive technology. Weichai Power and German KION Signed Successfully "People who get hydraulic parts have the world." The hydraulic control system is the most prominent "bottleneck" restricting the development of China's equipment manufacturing industry. Currently, the domestic high-end hydraulic products are completely dependent on imports. In 2011, the import value was nearly 30 billion yuan. The global hydraulic system has long been monopolized by Germany's Bosch Rexroth, the United States' Eaton Company, and Japan's Kawasaki Company. This strategic cooperation will cause major changes in the global hydraulic manufacturing landscape. Weichai Power and KION strategic cooperation: First, to help Weichai Power quickly master the world's leading high-end hydraulic technology. Through adaptive development and cooperation, we have achieved comprehensive breakthroughs in many fields such as construction machinery, agricultural machinery, yachts, and aerospace, making Weichai Power's core technology directly into the world's leading level, rapidly occupying the commanding heights of the hydraulic industry, and completely changing the high-end hydraulic pressure in China. Long-term dependence on imported products. The second is to help build Shandong Province into a domestic high-end hydraulic industrial base and to work hard to form a manufacturing center for hydraulic systems in China and even around the world. Relying on the existing advantageous resources of Weichai Power, through technology introduction, digestion and absorption, and independent innovation, we will build a full series, all fields, and global leading domestic middle and high-end hydraulic R&D and manufacturing bases. The project will be located in Weifang, Shandong Province. The third is to boost the structural adjustment and industrial upgrading of China's construction machinery industry. In the 12th Five-Year Plan for high-end equipment manufacturing industry, the state has made it clear that it is necessary to focus on the development of hydraulic products. In the adjustment and revitalization plan for the equipment manufacturing industry, it also puts forward the requirements for vigorous development of the liquid-tight industry. Linde Hydraulics is one of the few strategic resources in the world's high-end hydraulics market. It is a rare opportunity for Chinese companies to enter the high-end hydraulics industry. The acquisition of Linde Hydraulics, which combines the world's leading high-pressure hydraulic technology with China's low-cost manufacturing advantages, will completely change the situation in which high-end hydraulic core technologies have been monopolized by foreign countries for a long time, and promote the development of China's construction machinery industry to the high end of the value chain. The transformation created by manufacturing to China. The fourth is to help Weichai Power fully realize the strategic support for KION's 3-liter displacement low-power diesel engine. Fifth, by investing in 25% of KION Group's equity, it will achieve synergies with Shandong Heavy Industry's forklift business, improve the technical level, quality level and technological level of Shandong Heavy Industry forklift trucks, and lead the realization of the Asia-Pacific market strategy. Weichai Power Tan Xuguang interviewed by reporter Tan Xuguang, chairman of Weichai Power, told reporters: “This cooperation is an important step for us to implement the globalization strategy and strategic plans for expanding new markets and new products business activities in the next five years. Through this investment, we will make full use of it. The strong position of KION helps both parties grasp the new growth opportunities and further enhance their respective competitive advantages." KION Chief Executive Gordon Riske said: "This cooperation is the advantage of KION International Brand and our commitment to serving our customers. Certainly, the establishment of cooperation with Weichai Power will further strengthen our existing business contacts, and both parties have strong complementarity in terms of product, regional market position and technology, and the establishment of this strategic partnership is a strong growth for KION in the future. This has injected important impetus, especially in China and other Asian markets. Whether it is industrial forklifts or hydraulics, it will greatly benefit from Weichai Power's expertise in engine and drive technology." CEO of KION Gordon Riske Johannes Huth, director and head of KKR Europe, and Alexander Dibelius, CEO of Goldman Sachs Group Germany, Austria and Central and Eastern Europe, emphasized: “We welcome Weichai Power to join the ranks of KION shareholders. Since we started working with KION in 2006, , We have been working with KION's team to build KION into a truly global company.This investment is a big step in this direction, and cooperation with Weichai Power will continue to advance KION The growth strategy laid a good foundation." Goldman Sachs Group CEOs Alexander Dibelius from Germany, Austria and Central and Eastern Europe Weichai Power and KION also agreed to cooperate in other areas, such as parts and components. It is reported that Kiao forklift will form 250,000 sets of production capacity in the next five years, which will further boost the supporting of related products such as Weichai Power Engine. In addition, the two parties will give full play to the synergies of sales service network and production capacity, vigorously promote business growth, and enhance the competitiveness of their respective product areas and markets. In terms of material handling, the hydraulic business will enter into a long-term procurement and supply agreement with the Linde Forklift Division of KION. 90 M3/h Concrete Batching Plants
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Weichai and Kion Chief Executives attended the signing ceremony 
Weichai Power signed strategic cooperation agreement with German KION Group 
