Fundamentals of the KION Group
Management and control
In July, the Supervisory Board of KION GROUP AG extended the appointment of Chief Executive Officer Gordon Riske by five years to 30 June 2022. His previous contract, which was last renewed in 2013, had been due to run until the end of June 2017.
Strategy of the KION Group
The KION Group Strategy 2020, described in the 2015 group management report, is aimed at leveraging cross-regional and cross-brand synergies even more effectively and closing the gap on the global market leader by 2020. To achieve this, the KION Group is relying on its successful multi-brand approach, underpinned by a comprehensive modular and platform strategy. It is strengthening its presence in key markets and resolutely stepping up its activities in the fields of automation and service. Furthermore, in order to entrench its position as the most profitable supplier in the market, the KION Group aims to improve its EBIT margin so that it is permanently in the double-digit range – a target that remains unchanged in communications since the IPO. Further details on the Strategy 2020 can be found in the 2015 group management report.
A comprehensive portfolio of solutions for Intralogistics 4.0 is at the core of the Strategy 2020. The KION Group believes that connected machinery, products, processes and logistics are essential to intelligent supply chains and value chains.
The acquisition of Dematic, a leading specialist for automation and supply chain optimisation, is expected to be closed in the fourth quarter and will make the KION Group one of the world’s top suppliers of solutions for Intralogistics 4.0. Leveraging its sales and service networks, technologies and resources, the enlarged company will be able to seamlessly offer the full material handling product and service offering to customers of all sizes in a broad range of industries across the world. The KION Group is thus strengthening its position as a one-stop supplier for intelligent supply chain and automation solutions and can benefit from megatrends, such as digitalisation and the growing e-commerce business. Both companies contribute strong complementary market positions and geographical footprint. There will also be cost synergies and additional potential for revenues from services and systems upgrades.
The KION Group had already stated to build up a strong position as a provider of automated system solutions by acquiring Egemin Automation and Retrotech. After the transaction has been completed, Dematic will form a new KION Group operating unit that will also include Egemin and Retrotech.