KUKA and Midea strengthen cooperation in China
KUKA is further expanding its China business and is intensifying its cooperation with Midea through joint ventures.
March 22, 2018
Augsburg/Shunde, March 22, 2018 – The KUKA Executive Board has decided to contribute the General Industry Business of KUKA and the Swisslog business in China to Joint Ventures with companies of the Midea Group. KUKA and Midea will each hold a 50 percent stake in all three Joint Venture companies. The Joint Venture in the robot area is controlled by KUKA, while the Chinese automotive business remains fully owned by KUKA.
"With the Joint Ventures, we are now concretising our growth plans in China, thereby securing 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 the goal of becoming number one in robotics in China."
As part of the Joint Venture, a robot park will be built in South China's Shunde, where Midea is located, that will have a capacity of 75,000 robots (with a total capacity of 100,000 robot units including existing capacities) and AGVs by 2024. In addition to 6-axis-robots, the robot park will also be used to produce, develop and distribute new robots specifically for the Chinese market.
With the new products, KUKA will open up new market segments and increase market penetration. In addition, competitiveness is increased through increased local material procurement. The demand for robotic systems in China is still high. This will now be served by KUKA together with Midea quickly.
KUKA will hold a 50% stake in the Joint Venture and will chair the management board. Midea will bring the organizational structures and its distribution channels to the Joint Venture. The two other Joint Ventures are established by KUKA and Midea via the KUKA subsidiary Swisslog.