Kendrion announced in a statement on Wednesday that its Chinese operations, primarily focused on the automotive sector, no longer align with the company’s future strategic direction and will therefore be sold. The transaction includes its plant in Suzhou, with a deal value of approximately €70 million. According to the company, this divestment marks the completion of its strategic transformation, positioning Kendrion fully as an enterprise focused on industrial growth opportunities.
The company’s product portfolio covers a wide range of industrial solutions, including braking systems for industrial equipment, electromagnetic components, couplings, and industrial heating systems used in sectors such as wind turbines and robotics.
Background Information
Kendrion had already announced last year the sale of its automotive business in Europe and the United States. The divestment of its Chinese operations to local management further consolidates its strategic shift towards industrial manufacturing and high-growth niche markets.
CEO Joep van Beurden noted that in recent years the automotive sector has become “increasingly unprofitable.” Combined with mounting pressure on German and U.S. carmakers due to electrification trends and intensified competition from China, Kendrion decided two and a half years ago to gradually exit the automotive sector.
Despite a complex global economic environment, Kendrion delivered solid financial results in the first half of 2025. Net profit rose by nearly 50% to €7.6 million, while revenue increased by 3% to €157.5 million, reflecting steady recovery in its industrial business.
Conclusion
The sale of Kendrion’s automotive business in China completes its strategic restructuring, transforming the company into a growth-oriented industrial technology enterprise. ACIEN will continue to monitor such strategic developments and provide timely policy insights and market analysis for its member companies.
Source: This article is based on publicly available reporting from Nieuws.nl.
Original link: https://nieuws.nl/economie/kendrion-verkoopt-chinese-automotive-activiteiten
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