A DEUTZ joint venture with SANY will produce around 75,000 engines for SANY heavy trucks.
The agreement to establish shared engine production in China came into effect at the end of 2019. It was signed in September subject to necessary approvals by the relevant authorities. All were granted at the end of the year.
As well as various off-highway applications, DEUTZ will manufacture heavy-truck engines for SANY. The initial plan is to build around 75,000 new engines in 2022 at a new factory in Changsha, capital of the province of Hunan.
The province of Hunan supports the joint venture and will contribute tens of millions of US dollars in additional funding to the project. Production is scheduled to start in 2021.
“Establishment of the joint venture as part of our new China strategy is proceeding to plan,” explains Dr Frank Hiller, Chairman of the DEUTZ Board of Management.
“We are delighted to have SANY on board as our strong partner with which we can bring this important project to fruition. DEUTZ thus has extremely positive prospects for making full use of the still huge potential offered by the Chinese market.”