Chinese Acqusition of German Robotics Powerhouse Kuka Would Help Make It a High End Manufacturing Power

By: | September 19th, 2016

Kuka Robots

Kuka Robots

More on China’s M&A Shopping Spree in Europe

The Chinese government is known for its 5-year plans, and one of the most recent is a 5-year plan to make the Chinese robotics industry capable of supplying most of the robots in China. The goal is to move the Chinese economy away from low price, labor-intensive work to high-tech and high-quality products created in part by robots. Recent data from Mirae Asset Management suggests China will increase the number of robots in manufacturing at a compound annual growth rate (CAGR) of 35% through 2020.

Appliance manufacturer Midea, little-known outside of China, recently offered $5 billion to buy 95% of a major German robot maker, Kuka. Kuka builds manufacturing robots for Mercedes, BMW, and Boeing, and is a big get for the Chinese, if the deal is approved by German regulators. The $5 billion price tag includes a $2.5 billion payment up front, a “non-takeover posture” until 2023, and an additional $2.5 billion down the line.

Another Chinese company, Siasun Robot & Automation, is also acquiring domestic and international component manufacturers as Chinese investment and involvement in the manufacture of robots escalates.

David Russell Schilling

David enjoys writing about high technology and its potential to make life better for all who inhabit planet earth.

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