ChemChina to list KraussMaffei on the Shanghai Stock Exchange
| Subj: Press-releses
The Chinese company China National Chemical Corporation (ChemChina) is seeking to list its subsidiary KraussMaffei, a world leading supplier of machinery and systems for producing and processing plastics and rubber, on a stock exchange in China. To this end, KraussMaffei is to be brought into the Qingdao Tianhua Institute of Chemistry Engineering Co. Ltd, which is listed on the Shanghai stock exchange and a subsidiary of ChemChina, by way of injecting its equity interest into an existing listed company under ChemChina. In addition, it is planned to integrate amongst others three sites for the production of tires and rubber facilities from ChemChina into the listed entity. The transaction is subject to approvals by relevant bodies and regulators. "KraussMaffei's business would make up about 85 percent of the listed company", said Frank Stieler, CEO of KraussMaffei. KraussMaffei would continue to expand the international business from Germany as well as drive the Chinese business locally. Through the planned access to the Chinese capital market, KraussMaffei will be able to accelerate its growth in the mid-term. The company already increased its revenue for fiscal 2016 by 5 percent to 1.27 billion Euros and is heading to cross the mark of 1.3 billion Euros in 2017. Since April 2016 KraussMaffei is under majority ownership of the leading Chinese chemicals company ChemChina.
Growth to be accelerated
The planned transaction is the next step in the development of KraussMaffei. In 2016 the company solidified its leading technological market position in the plastics and rubber industries and with the change in ownership laid the foundation to enhance its profitable growth. “Through the planned transaction we are receiving access to the capital market. Through new financial resources we have the opportunity to continue to develop our company and accelerate our planned growth”, said Frank Stieler, CEO of KraussMaffei. In the current fiscal year 350 new jobs are expected to be created. In August 2017 KraussMaffei globally already exceeded the 5,000-employee mark.
Employee representatives and IG Metall welcome KraussMaffei’s next step
The company headquarters of KraussMaffei remain in Munich, Germany. The German codetermination rights, the legal form of the company as well as employee and union agreements remain unchanged. The employee representatives and IG Metall therefore welcome KraussMaffei’s next step. “The further improved access to the Chinese market will continue to generate growth through which existing jobs in Germany and Europe will be secured”, said Peter Krahl, Chairman of the works council of KraussMaffei. The IG Metall also has a positive view on these developments. “Under the new ownership KraussMaffei is on a clear course. Most recently the 5,000th employee was hired. ChemChina is a reliable partner”, said Horst Lischka, Company Representative of the IG Metall responsible for Munich and member of the Chairman’s Committee of the Supervisory Board of KraussMaffei.
ChemChina continues to hold their stakes in KraussMaffei
ChemChina remains actual controller of KraussMaffei and will continue to support the future growth of the company. “We have always believed in the growth potential of the company. Through a future listing on the Shanghai stock exchange, the perception of KraussMaffei will significantly increase in the Chinese market. Chinese investors appreciate German industrial workmanship as well as management competency,” said Jianxin Ren, Chairman of ChemChina. The Qingdao Tianhua Institute of Chemistry Engineering Co. Ltd. is currently listed on the Shanghai stock exchange under the ticker symbol 600579.SS. Trading of Qingdao Tianhua Institute of Chemistry Engineering Co. Ltd. shares has been halted for the past five months in accordance with Chinese regulation.