Expansion of business in China
Kuka intensifies cooperation with Midea
Kuka is further expanding its business in China and intensifying its cooperation with Midea through joint ventures.
The Kuka Board of Management has decided to contribute the General Industry business and the Swisslog business in China to joint ventures with companies of the Midea Group. Kuka and Midea will hold a 50 percent stake in all three joint venture companies. The robotics joint venture will be controlled by Kuka, while Kuka will retain 100 percent of the Chinese automotive business.
"With the joint ventures, we are now concretizing our growth plans in China and thus ensuring global success for Kuka," says Dr. Till Reuter, CEO of Kuka AG. "Kuka and Midea complement each other very well. The cooperation brings us closer to our goal of becoming the number 1 in robotics in China."
As part of the joint venture, a robot park will be built in Shunde in southern China, Midea's home base, which is expected to have a capacity of 75,000 robots (with the existing capacity, a total of 100,000 robot units) and AGVs by 2024. In addition to 6-axis robots, the robot park will also be used to produce, develop and sell new robots specifically for the Chinese market.
The new products will enable the company to tap into new market segments and increase its market penetration. In addition, competitiveness will be increased through increased local material procurement. The demand for robot systems in China remains high. Together with Midea, Kuka will now quickly meet this demand. Kuka will hold a 50 percent stake in the joint venture and will chair the management board. Midea will contribute its organizational structures and sales channels to the joint venture. Kuka and Midea will enter into the two other joint ventures via Kuka's subsidiary Swisslog. kp
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