German truck giant KION's new plant in China breaks ground

German truck giant KION Group said Monday that the construction of its new plant in Jinan, east China's Shandong province, has begun.

The project, unveiled in March this year, attracted an investment of 100 million euros (118.8 million U.S. dollars) and is expected to create more than 800 new jobs by 2025, according to a statement from the company.

"China has recovered quickly from the coronavirus crisis and as one of the fastest-growing markets worldwide, it plays a key role in our strategy," said Gordon Riske, chief executive officer (CEO) of KION Group AG, during the ground-breaking ceremony on Monday via a video link.

KION said it aims to significantly extend its product portfolio through the new plant, which will be producing counterbalance trucks.

To this end, KION Group and its anchor investor Weichai Power established a new company, in which KION has a stake of 95 percent and Weichai Power 5 percent.

Weichai Power, a Shandong-based enterprise that mainly produces diesel engines, started to invest in KION in 2012 and now holds 45 percent of the stake.

Tan Xuguang, chairman and CEO of Weichai Power, said during the ceremony that "this historic moment once again underscores the close and collaborative working relationship between the KION Group and Weichai Power."

According to KION, China accounts for around 30 percent of the global industrial truck market and the company believes the share is set to increase.