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KraussMaffei lists on Chinese capital market; to accelerate growth in China

KraussMaffei lists on Chinese capital market

Germany-based machine maker KraussMaffei Group (KraussMaffei), which was bought by Chinese chemical firm ChemChina in 2016, completed its listing on the Shanghai stock exchange in December 2018. The listing occurred through the transfer of ChemChina’s stake in KraussMaffei to ChemChina’s majority owned subsidiary THY (Qingdao Tianhua Institute of Chemistry Engineering), which is listed on the Shanghai stock exchange.

In addition, THY has taken over ChemChina’s production site in Sanming, China. New injection moulding machines for the Chinese market will be manufactured at this site in the future.

Dr. Frank Stieler and Dr. Harald Nippel, CEO and CFO of KraussMaffei, will lead the new integrated mechanical engineering company. The combined business will operate under the brand KraussMaffei. KraussMaffei generates more than 80% of the approximately EUR1.5 billion revenue of the total entity.

“We are very happy – something big is being created! We now have the opportunity to drive our growth even faster and better. The listing provides us with access to the Chinese capital market. This step will significantly strengthen us in China as well as globally,” said Dr. Frank Stieler, CEO of KraussMaffei. “With the additional production site in Sanming we can further expand our presence in China. At the same time, we will drive our international business from Germany,” Stieler explains.

KraussMaffei also says the access to the Chinese capital market enables it to further accelerate its growth. The access to new financial resources is to contribute to the strategy “Compass”.

“We are expanding our product portfolio with new machinery series for volume markets and are broadening our digital services business. We are rapidly advancing local business models, especially in China,” explains Stieler. With the strategy “Compass”, KraussMaffei is focusing on expanding its business models, especially in the area of digital services. In July 2018, the company launched the new Digital Service Solutions business unit for this purpose.

KraussMaffei says it intends to significantly expand its presence in China. It will take on the operational responsibility for the integrated production site in Sanming, China. The site will produce newly developed injection moulding machinery for the local Chinese market for KraussMaffei. Due to the rising demand for such products with high quality standards, it expects an annual sales growth of over 20% (CAGR) in China in the coming years.

The existing business of THY will be continued. THY is a design institute and specialty engineering company for components required in chemical plant construction.

Furthermore, KraussMaffei says it will continue to lead its business from the company headquarters in Munich, Germany. The employee representatives and IG Metall welcome this step to the capital market.

“We are convinced of the growth opportunities offered by the access to the Chinese capital market. The transaction is a positive development for KraussMaffei and offers opportunities to secure and create jobs also in Germany,” says Susanne Meyer, Deputy Chairwomen of the works council of KraussMaffei. The IG Metall also welcomes this development.”

Since April 2016, ChemChina has been a majority owner of KraussMaffei via THY. ChemChina’s shares in THY are subject to a holding period of three years.

(IMA)


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