KION Group announces plans to reorganise its container handling and heavy forklift trucks businesses
January 31, 2013 - London
KION GROUP GmbH /KION Group announces plans to reorganise its container handling and heavy forklift trucks businesses . Processed and transmitted by Thomson Reuters ONE.The issuer is solely responsible for the content of this announcement.
- Consultations regarding potential closure of Merthyr Tydfil site announced
- Linde Material Handling will continue to offer container handling and heavy forklift trucks worldwide
Wiesbaden, 31 January 2013 - The KION Group, one of the two leading global manufacturers of industrial trucks, today announced that it had entered into consultations regarding a potential reorganisation of its business activities in Merthyr Tydfil (Wales, UK), including a potential closure of the site. The reorganisation forms part of its continuing efforts to further improve the efficiency of its European production network.
"Our goal is to significantly improve our container handling and heavy truck business. In addition we intend to further increase the long-term competitiveness of our offerings to customers through a revised strategy for the container handling business and the heavy forklift truck segment of our Linde brand," said Theodor Maurer, member of the Executive Board of KION Group and CEO of Linde Material Handling.
Linde Material Handling, which is wholly owned by KION Group, and its dealer network will continue to sell a wide range of container handling products and heavy forklift trucks to customers globally. The company will maintain the highest standards in quality, delivery, performance and value - all standards that its customers are accustomed to.
The Merthyr Tydfil site employs 203 people in manufacturing, engineering, sales, service and administration. Consultation with the affected employees, worker representatives, and unions will begin soon and will last for at least 90 days. If this consultation results in a decision to close the plant, KION will provide as much assistance as possible to employees seeking alternative work or training. The Group will offer the opportunity to apply for vacant positions at other sites to the employees affected and also work with employees and their representatives to agree on appropriate loyalty and severance packages.
KION Group remains fully committed to supplying the UK market and continues to employ more than 1,700 employees in sales, service and support functions at over 20 locations of its Linde Material Handling and STILL brands in the UK. The Group's annual purchasing volume from UK based suppliers is approximately Euro 75 million (2012).
The KION Group - comprising the six brands Linde, STILL, Fenwick, OM STILL, Baoli and Voltas - is Europe's market leader in industrial trucks, the global number two in the industry and the leading non-domestic supplier in China. The Linde and STILL brands serve the premium segment worldwide. Fenwick is the largest supplier of material handling products in France, while OM STILL is a market leader in Italy. The Baoli brand focuses on the economy segment, and Voltas is one of the two market leaders in India. The KION Group employed roughly 22,000 people and generated revenue of around €4.4 billion in 2011.
This press release contains forward-looking statements involving known and unknown risks, uncertainties and other factors, many of which are outside the control of the KION Group ('KION'), are difficult to predict and may cause future developments to differ significantly from assumed developments as expressed or implied in the forward-looking statements in this press release.
Any liability (including in respect of direct, indirect or consequential loss or damage) of any member of KION with regard to the information contained in this press release is expressly disclaimed. This press release does not purport to contain all of the information that may be required to evaluate any proposed transaction, and any recipient hereof should seek its own legal, accounting and other relevant professional advice.
No member of KION undertakes any obligation or expects to update or revise this press release, including forward-looking statements or any other information contained herein, whether as a result of new information, future events or otherwise.
For further information please contact
Head of Corporate Communications
KION Group GmbH
Tel: +49 (0) 611 770 655
Tel.: +44 (0) 207 251 3801
Mobile: +44 (78) 24 44 62 45
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Source: KION GROUP GmbH via Thomson Reuters ONE