JINAN -- Weichai Power, an automotive and equipment manufacturing firm under Shandong Heavy Industry on Monday clinched a deal to buy a one-quarter stake in German forklift truck maker Kion Group.

The 738 million-euro ($922 million) deal was signed in Jinan, capital of east China's Shandong Province, and marked the greatest direct investment in a German firm made by a Chinese company to date.

Under the deal, Weichai Power will invest 467 million euro to acquire a 25-percent stake in Kion Group, and another 271 million euro for a 70-percent majority stake in Kion's hydraulics business.

Kion Group is the world's second-largest forklift truck maker and holds 15 percent of the global market share in the business. The purchase is expected to offer Kion debt-refinancing relief.

Tan Xuguang, chairman of the board of SHIG and CEO of Weichai Power, said Weichai will continue to raise its shares in Kion to 30 percent if the German partner's IPO is successful.

He said the Sino-German partnership will result in a significant change in the world's hydraulics industry.

"The deal helps integrate the world's leading high-pressure hydraulics technology and China's low-cost manufacturing advantage," Tan said.

Gordon Riske, CEO of Kion Group, said the deal will help the company gain better access to the Asian market.

Kion Group's hydraulics subsidiary -- Linde Hydraulics -- has two solely-funded plants in China. The plants' output accounts for 25 percent of the Chinese market share in the sector.

SHIG, the country's leading heavy industry company, realized revenues of 35.5 billion yuan ($5.59 billion) in the first half, down by 27.73 percent year on year.

Tan said the group has sustained 15 months of growth in export delivery value, which rose by 56 percent year on year in the first half, despite a recent plunge in the purchasing managers index for the manufacturing sector.

He said Weichai Power has sufficient capital flow after making its investment in Kion.

Tan announced last week that Weichai Power had recently concluded the acquisition and strategic restructuring of the Italy-based Ferretti Group.

Weichai Power now holds a 75-percent stake in Ferretti.

Tan said the company will use the next five years to make the company more comprehensive, adding that it will combine yacht design, construction and related system solutions, as well as organize related events.