KraussMaffei completes listing on the Shanghai stock exchange

The KraussMaffei Group announced that it has completed its listing on the Shanghai stock exchange on 28/29 December 2018. The listing occurred through the transfer of ChemChina’s stake in KraussMaffei to its majority owned subsidiary THY (Qingdao Tianhua Institute of Chemistry Engineering), which is listed on the Shanghai stock exchange. In addition, THY has taken over ChemChina’s production site in Sanming, China. New injection moulding machines for the Chinese market will be manufactured at this site in the future. Dr. Frank Stieler and Dr. Harald Nippel, CEO and CFO of KraussMaffei, will lead the new integrated mechanical engineering company. The combined business will operate under the brand KraussMaffei. KraussMaffei generates more than 80 % of the approximately EUR 1.5 billion revenue of the total entity.

“We now have the opportunity to drive our growth even faster and better. The listing provides us with access to the Chinese capital market. This step will significantly strengthen us in China as well as globally,” said Stieler. “With the additional production site in Sanming we can further expand our presence in China. At the same time, we will drive our international business from Germany,” Stieler explained.

Dr. Frank Stieler, CEO of KraussMaffei, in Shanghai. (Source: KraussMaffei)

The access to the Chinese capital market will enable KraussMaffei to further accelerate its growth. The access to new financial resources is to contribute to the strategy “Compass”. “We are expanding our product portfolio with new machinery series for volume markets and are broadening our digital services business. We are rapidly advancing local business models, especially in China,” said Stieler. With the strategy “Compass”, KraussMaffei is focusing on expanding its business models, especially in the area of digital services. In July 2018, the company launched the new Digital Service Solutions business unit for this purpose.

The company intends to significantly expand its presence in China. KraussMaffei will take on the operational responsibility for the integrated production site in Sanming, China. The site will produce newly developed injection moulding machinery for the local Chinese market. Due to the rising demand for such products with high quality standards, the company is expecting an annual sales growth of over 20 % (CAGR) in China in the coming years.

The existing business of THY will be continued. THY is a leading design institute and speciality engineering company for components required in chemical plant construction. KraussMaffei will continue to lead its business from the company headquarters in Munich, Germany. The German codetermination rights, the legal status of the KraussMaffei Group GmbH as well as employee and union agreements remain unchanged. The rights to technologies also remain bundled in Germany.

Since April 2016, the Chinese chemicals company ChemChina is majority owner of KraussMaffei. ChemChina remains majority shareholder of KraussMaffei via THY and will continue to support the future growth of the company.

www.kraussmaffeigroup.com