Weichai Power and Kion Group GmbH on Monday signed a strategic cooperation agreement through which Weichai will invest 738 million euros ($928 million) in the German forklift maker for a 25 percent stake in Kion and a 70 percent stake in Kion's hydraulics business unit. [Photo/Xinhua]

"Owning Kion's advanced technology will also help Weichai Power support the upgrading and restructuring of China's engineering equipment industry," said Tan.

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Kion Group is the world's second-largest and Europe's biggest forklift truck maker, with a global market share of 15 percent. It has 12 forklift manufacturing facilities around the world, and its sales network extends to more than 100 countries.

In 2011, Kion reported annual revenue of 4.37 billion euros, with a worldwide forklift capacity of 1.12 million units.

Germany has been a major target in recent years for Chinese companies seeking global expansion through mergers and acquisitions.

Sany Heavy Industry Co Ltd, a leading Chinese manufacturer of construction machinery, spent 8.1 million euros to fully take over Intermix GmbH, a German truck mixer maker from its founder Hans-George Stetter through its subsidiary Putzmeister, a German concrete machinery manufacturer, in July.

The acquisition will expand Putzmeister's product portfolio, extend its industry chain and improve its cooperation with Sany's existing business, the Changsha-based company said.

In August, privately owned automaker China Youngman Automobile Group Co, headquartered in Jinhua, Zhejiang province, said that it had received provincial government approval to purchase a major stake in Germany's Viseon Bus GmbH for 10 million euros, after its failed bid for Saab last year.

Earlier this year, Hebei-based automotive supplier Lingyun Industrial Group Corp and two other Chinese companies signed an agreement to acquire 100 percent of German car-lock maker Kiekert AG, a move intended to strengthen Lingyun's technological capabilities and position it for global growth.

According to a survey conducted by consulting firm Ernst & Young in June, among 400 executives of medium-sized and large Chinese firms from different industries, Germany is their most attractive investment destination in Europe.

Among Chinese companies which plan to invest in Germany, 9 percent said they preferred joint ventures, while 56 percent would opt for mergers and acquisitions.

The survey said that 57 percent of the companies were interested in investing in the mechanical engineering industry, with the automobile sector taking second place.

"German companies and brands are regarded highly in China, which shapes the image of Germany as an investment location from the perspective of Chinese companies," said Yi Sun, a partner at Ernst & Young and head of China business services in Germany, Austria and Switzerland.

Zhao Ruixue in Jinan contributed to this story.

lifangfang@chinadaily.com.cn

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