Strategy of the KION Group

Objectives of the Strategy 2020

The KION Group presented its Strategy 2020 in March 2014, clearly setting out its goals for the next few years:

  • Growth: The KION Group wants to accelerate its growth and close the gap to the global market leader by 2020. To this end, it is strengthening its leading positions in the European and Brazilian markets so that it can go on to capture additional market share in growth markets, particularly those in Asia and North America. This growth is to be accompanied by a far greater presence in the largest price segment (volume).
  • Profitability: The KION Group aims to further improve its EBIT margin in order to expand its position as the most profitable supplier in the market. It has therefore set a target of a sustained EBIT margin of above 10 per cent. This requires not only an increase in the gross margin but also strict control of fixed costs.
  • Efficient use of capital: The KION Group is working steadfastly to optimise the return on capital employed (ROCE). Besides increasing earnings, the focus here is on managing assets and finance.
  • Resilience: The KION Group aims to improve its ability to cope with economic downturns. It is therefore stepping up efforts to diversify its business in terms of regions and customer sectors alongside its initiatives to optimise the production network and expand the service business.

Strategic focus areas of the Strategy 2020

The Strategy 2020 essentially encompasses six closely related areas of focus.

Multi-brand strategy

The starting point is the further development of the successful multi-brand strategy, coupled with greater differentiation within it. The premium brands, Linde and STILL, are to consolidate their presence at the upper end of the volume segment on the basis of the platform strategy (see below), particularly in North America and the emerging markets. As the global brand for the economy segment, Baoli is to gain a foothold at the lower end of the volume segment with a tailored product and sales strategy. In future, all three global brands – Linde, STILL and Baoli – will be represented in these regions and cater to all price segments.

Global modular and platform strategy

Global production network

Regional growth strategies

Strategy for aftersales and service business

Strategy for back-office functions