Dematic China to Build New Plant in Jinan, Shandong Province
December 16, 2021
JINAN, SHANDONG - KION Group subsidiary, Dematic, held a groundbreaking ceremony for its new plant in Jinan, Shandong. This is another major event in the localization strategy Dematic has been implementing since it entered the China market. It also represents another major investment by Dematic, showing its confidence in the future of the Chinese market. The plant has a planned area of 150,000 square meters and is expected to attract about RMB 300 million in investment. Operation will commence in the first quarter of 2023.
Strongly Focus on China Market and Drive Forward Dematic’s Localization Strategy
As a major milestone in KION Group’s operations in China, Dematic’s new Jinan plant has been highly valued by leaders at both local provincial and municipal levels. The General Manager of Shandong Heavy Industry Group hosted the groundbreaking ceremony, while various other senior leaders joined in person to witness this historic moment. These members included:
- The Member of the Standing Committee of Shandong Provincial Party Committee and Secretary of the Jinan Municipal Party Committee
- The Deputy Secretary of the Municipal Party Committee and Mayor of Jinan
- The Secretary of the Party Committee and Chairman of Shandong Heavy Industry Group
- The General Manager of Shandong Heavy Industry Group
- KION CEO
- Dematic CEO
- Several Leaders from Dematic headquarters and China
Full coverage was provided by several highly respected media outlets.
Mr. Tan Xuguang, Secretary of the Party Committee and Chairman of Shandong Heavy Industries Group, said, “With the successful launch of Dematic’s new plant, we are confident that we will create more economic growth in this sector in China.”
Gordon Riske (CEO of KION Group) and Hasan Dandashly (President, Dematic, KION Group Executive Board Member) both attended the groundbreaking ceremony via videolink, with Mr. Riske stating that, “With Dematic’s new plant, KION Group takes another step in tapping the potential of this important market and improving its market share in China.” Mr. Dandashly added, “Over the past 20 years, Dematic has achieved extraordinary growth in China. The construction of this new plant marks another step in the implementation of KION Group’s 2025 Strategic Development Plan and Dematic’s commitment to localization in China.”
Take Actions to Fulfill Commitment to Long-Term Deployment in the Chinese Market
As an intelligent automation provider with over 200 years of integration experience, Dematic is taking actions to fulfill its commitment to long-term deployment in China. Once operational, the Jinan plant will allow Dematic to meet the ever-growing market demand for its solutions, including Mini-Load systems, Unit Load system, Conveyor systems, and Automated Guided Vehicles (AGVs). The new Jinan plant will also be home to a modern technology center that will offer a comprehensive and intuitive logistics experience to customers from a range of sizes and industries.
Dematic has been active in the Chinese market for more than 20 years. Using its diverse integrated systems and business strategy of continuous localization, it has successfully built more than a thousand smart logistics and warehousing systems for a host of industries including manufacturing, food and beverage, healthcare, apparel, chemicals, grocery, and fast-moving consumer goods (FMCG) and e-commerce in China. Once the new Jinan plant is up and running, Dematic will continue its deep deployment in the Chinese market as well as its commitment to bringing long-term growth benefits to China through intelligent logistics solutions that provide flexibility and address the needs of Chinese consumers.
Below is the Dematic CEO Hasan Dandashly’s Speech:
Good afternoon to our distinguished leaders and guests.
While I wish I were there with you in person today for this important inauguration and groundbreaking event, I’m pleased that technology has continued to allow us to be together even when it’s physically impossible. Today is an exciting day for the KION Group and for Dematic, with the completion of the new Jinan factory that will produce counter-balanced trucks, and the groundbreaking for the future Dematic plant.
Dematic has been active in the Chinese market for more than 20 years. We have built more than a thousand smart logistics and warehousing systems for a host of industries including manufacturing, food and beverage, healthcare, apparel, chemicals, grocery, consumer goods, and e-commerce in China. At 28 thousand square meters, our new state of the art manufacturing site in Jinan will be our 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 and are delivered more flexibly.
Some of the technologies that will be made in the plant are Dematic’s Miniload system, Unit load system, Conveyor system and Automated Guided Vehicles (AGVs). We are also excited that the plant will house a truly modern technology center that offers a more comprehensive and intuitive logistics experience to customers from a range of industries and scales. It will be the showpiece for our capabilities in China and the APAC region overall.
In total, we are investing around 40 million euros in the project and intend to attract more than 300 new jobs by the end of 2024. All this offers us perfect conditions to sustainably advance our business in China and worldwide.
Delivering this cutting-edge manufacturing plant is no easy task. We are deeply grateful for the strong support of the Jinan Government and Chinese partners for this project. I wish it all the best and hope to meet with you in person at the opening ceremony early 2023.
My sincere congratulations and have a great celebration!
Thank you very much.
Dematic designs, builds, and supports intelligent automated solutions empowering and sustaining the future of commerce for its customers in manufacturing, warehousing, and distribution. With research and development engineering centers, manufacturing facilities, and service centers located in more than 35 countries, the Dematic global network of over 11,000 employees has helped achieve approximately 8,000 worldwide customer installations for some of the world’s leading brands. Headquartered in Atlanta, Dematic is a member of KION Group, one of the world’s leading suppliers of industrial trucks and supply chain solutions.
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