By Cecilia Butini

Kion Group AG said Monday that it is investing 100 million euros ($118.4 million) in the construction of a new plant in eastern China for the production of counterbalance trucks.

The German forklift maker said the plant, which is being built in Jinan, in Shandong province, should be operative in 2022 and should create over 800 jobs by 2025.

Kion added that it has established a new company to ensure the group's strong presence in the region. Kion holds a 95% stake in the new company. The remaining 5% is held by Shandong-based Weichai Power Co., which holds a 45.2% stake in Kion.

The new plant will also allow Kion to "capitalize on the trend toward electrification of industrial trucks in China," the company said.

According to the company, the new plant will also host a research and development center and administrative offices. 



  Write to Cecilia Butini at cecilia.butini@wsj.com