ChemChina Seeks tech

Chinese Buy KraussMaffei in Bumper German Deal

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KraussMaffei is one of Germany's leading machine producers.
  • Why it matters

    Why it matters

    The purchase of KraussMaffei and its technology will strengthen ChemChina’s position in the global chemical and machinery products market.

  • Facts

    Facts

    • KraussMaffei makes injection molding machinery, presses, robots and other machines and had 2014 sales of €1.1 billion ($1.2 billion).
    • ChemChina is China’s largest chemicals company, with a turnover of €37 billion in 2015.
    • It bought Italian tire maker Pirelli for around €7 billion last year.
  • Audio

    Audio

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China National Chemical Corporation, known as ChemChina, has agreed to buy KraussMaffei, one of Germany’s leading machine makers, for €925 million ($1 billion).

The deal is the biggest acquisition of a German company by Chinese investors.

Chairman Jianxin Ren said in a joint statement on Monday that ChemChina was buying KraussMaffei, owned by Canadian private equity firm Onex, for its technological expertise.

KraussMaffei, which is not related to German weapons maker Krauss-Maffei Wegmann, makes injection molding machinery, presses, robots and other machines and is headquartered in Munich. It had sales of €1.1 billion in 2014 and currently employs around 4,500 people globally, with 2,800 in Germany.

“[The purchase] will benefit our Chinese subsidiaries and position the chemical machinery business of ChemChina, which builds and sells equipment for the rubber and chemical industry, to become a pioneer in achieving the “Made in China 2025” program which aims to enhance Chinese industry,” Mr. Ren said.

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