The first phase of the Kion forklift truck manufacturing plant was put into operation on Dec 16 in Jinan, Shandong province. The project is a joint venture by Germany's Kion Group and Weichai Power, a subsidiary of the Shandong Heavy Industry Group .

Kion Group is the world's leading provider of industrial forklifts and warehouse automation equipment. Located in Jinan's Laiwu district, the plant represents an investment of 5 billion yuan ($721.3 million) and has an annual capacity of 40,000 units.

Officials pose for a photo at the launch ceremony on Dec 16. [Photo/english.jinan.gov.cn]

Another factory by American Dematic, a wholly-owned subsidiary of Kion Group, started construction on the same day.

The American Dematic automation equipment factory covers an area of nearly 200 mu (13.33 hectares) and represents an investment of 40 million euros ($45.3 million). It is expected to be completed and put into trial operation in the first quarter of 2023.

The first new energy forklift truck produced by Kion China is launched on Dec 16. [Photo/english.jinan.gov.cn]

Sun Shutao, mayor of Jinan, said that the two projects highlight the progress that Jinan has made in creating an industry chain that integrates auto parts, vehicle and logistics.

The two projects will help Shandong Heavy Industry Group expand into the Asia-Pacific market, said Tan Xuguang, chairman of Shandong Heavy Industry Group.

Hasan Dandashly, CEO of Dematic, said that the new state-of-the-art manufacturing factory in Jinan will be the company's largest in Asia. 

"The new plant will allow us to continue to bring long-term benefits to China through intelligent logistics solutions that better address the needs of Chinese consumers," said Dandashly.