(Left to right): Ting Cai, Chairman and CEO of the China National Chemical Equipment Co. Ltd. (CNCE), Dr. Frank Stieler, CEO of the KraussMaffei Group, and Chen Junwei, CEO of the ChemChina Finance Co. Ltd.
China-based chemicals group, China National Chemical Corporation (“ChemChina”), has agreed to acquire KraussMaffei Group from Onex Corporation for €925million.
The KraussMaffei Group will continue to operate in its current corporate structure, with the transaction expected to accelerate the growth of the company “considerably” in China’s high-end plastics injection moulding industry.
“With ChemChina, we have found a strategic and long-term oriented investor who has been interested in our Company for many years,” said Frank Stieler, CEO of the KraussMaffei Group.
“We are strengthening our company with one of the leading global engineering groups, encompassing a 178-year corporate history. In doing so, we expect that KraussMaffei Group will maintain its identity and independence,” said Jianxin Ren, Chairman of ChemChina.
“We are investing in the Company’s strong management team and its technological expertise, which we believe will benefit our Chinese subsidiaries and position the chemical machinery business of ChemChina, which build and sell equipment for the rubber and chemical industry, to become a pioneer in achieving the “Made in China 2025” program which aims to enhance Chinese industry.
“The growth potential of the KraussMaffei Group is tremendous, especially through improved access to the Chinese market, which we can make possible. We expect trends in the automotive industry towards advanced manufacturing and lightweight components will provide a huge development opportunity for the high-end plastic injection moulding industry. Together, ChemChina and the KraussMaffei Group will be well positioned for future growth,” added Jianxin Ren.
Growth to accelerate considerably
“Following Onex’s acquisition in late 2012 KraussMaffei Group has achieved strong growth and had a very successful year in 2015. As part of ChemChina, we expect to considerably accelerate our growth strategy, especially in China and Asia, and to further strengthen the Company in Germany and Europe,” added Stieler.
In China, the Company is expected to benefit in particular from the trend towards higher quality and sustainability. The KraussMaffei Group says machines and systems of the three brands - KraussMaffei, KraussMaffei Berstorff and Netstal - are especially suited to meet “more challenging” customer requirements. As a result of the transaction, the KraussMaffei Group says it “will be able to accelerate” its planned expansion in China.
Locations remain – increase in jobs planned for Germany in 2016
“Accelerated growth will have a sustained positive impact for the Company globally. Our Company has a strong foundation and we will continue to build on our strengths, and create new jobs around the world,” said Stieler.
The KraussMaffei Group’s headquarters will remain in Munich and the operating and corporate responsibility for the Company will stay in Europe. This, it says, applies in particular to production, technology, patents as well as research and development.
The KraussMaffei Group will continue to operate as a German company with a Supervisory Board based on co-determination. All existing collective agreements and location-based commitments will remain unchanged.
At present, the Company has approximately 4,500 employees globally, of which 2,800 are based in Germany. The Company intends to increase its workforce in 2016, including in Germany.
ChemChina focuses on management expertise as well as on quality and value of the acquired companies
ChemChina is China’s largest chemicals group, having generated revenues of around €37 billion in 2015 with approximately 140,000 employees, of whom 45,000 are located outside China.
The group operates internationally and has a global expansion strategy, having acquired or invested in companies in Italy, France, Norway, the UK and Singapore in the last few years with the most recent acquisition being the
high-end tyre manufacturer, Pirelli.
When it comes to equity investments, ChemChina says it focuses on “exceptional management expertise” as well as the “quality and value of the acquired companies.”
Following Onex’s acquisition in 2012 KraussMaffei Group has demonstrated sustained improvement in its financial and operational performance. In 2014, the Company generated revenues of approximately €1.1 billion and is expected to achieve year-on-year revenue growth of approximately 10 percent for 2015.
“We thank Onex for constructively supporting our Company over the last three years, which has allowed us to achieve record performance in 2015 and has positioned the Company well for the future,” commented Stieler.