German engine manufacturer Deutz has signed a joint venture agreement with Chinese construction equipment manufacturer Sany. The new structure will be owned 51% by Deutz who will also inject € 2 million. The company will take over production of Sany’s engine range with the goal of producing 75,000 new engines by 2022. These will comply with the China IV emissions standards for off-road applications and China 6 for on-road applications.
“We are now ideally positioned to take advantage of the rapid growth in the world’s largest individual market for engines. The alliances with our local partners will enable us to significantly increase our local presence for engines and we now have access to an attractive production network that will enable us to efficiently meet customer demand in the region. We can also tap into an extensive service network that we will systematically enhance with digital solutions. In an initial stage, we aim to achieve revenue of around half a billion euros by 2022,” says Dr. Franck Hiller, CEO of Deutz.