KraussMaffei Group to expand in China

ChemChina, one of China’s largest chemicals group, is set to acquire KraussMaffei Group and its brands KraussMaffei, KraussMaffei Berstorff and Netstal, for €925m.

KraussMaffei Group’s HQ will remain in Munich and its production, technology and patents will stay in Europe. It has approximately 4,500 employees globally with plans to increase its workforce in 2016.

The firm will continue to operate as a German company with a Supervisory Board based on co-determination.

As part of ChemChina, we expect to considerably accelerate our growth strategy, especially in China and Asia, and to further strengthen the company in Germany and Europe,” said Frank Stieler, CEO, KraussMaffei Group.

Following Onex’s acquisition in 2012 KraussMaffei Group has demonstrated sustained improvement in its financial and operational performance. In 2014, the company generated revenues of approximately €1.1bn and is expected to achieve year-on-year revenue growth of approximately 10% for 2015.

ChemChina operates internationally and has a global expansion strategy, having acquired or invested in companies in Italy, France, Norway, the UK and Singapore in the last few years with the most recent acquisition being Pirelli.