Deutz will take over production of SANY’s engines in a joint venture that includes an investment of several million euros. Deutz will hold a 51-percent share in the JV, which is expected to close by the end of the year.
Deutz aims to provide SANY with around 75,000 new engines in 2022. These engines will comply with the China IV emissions standard for off road applications, and China 6 for on-road applications.
Deutz will produce between 2,000 and 3,000 engines in 2020 with the goal of 20,000 in 2022.
“The joint venture agreement marks an important milestone in the implementation of our new China strategy,” Frank Hiller, Deutz CEO, said in a press release. “The alliances with our local partners will enable us to significantly increase our local presence for engines.”
Source: Deutz
