DEUTZ AG
DEUTZ AG: New three-pillar growth strategy in China
DEUTZ AG: New three-pillar growth strategy in China – Joint venture with leading construction equipment group SANY – Expansion of service business with HORIZON – Manufacturing alliance with BEINEI – Revenue of half a billion euros expected in 2022
DEUTZ and SANY, China’s largest construction equipment group, signed a memorandum of understanding in Beijing. The two companies are forming a joint venture in which DEUTZ AG will be the majority shareholder with a stake of 51 per cent. Initially, the plan is to supply SANY with around 75,000 new engines for off- and on-road applications in 2022. These engines will comply with the China 4 and China 6 emissions standards. One of the leading engine manufacturers in the off-highway segment, DEUTZ AG is thus stepping up its activities in the on-highway segment as well. DEUTZ AG’s initial investment in the new joint venture is in the mid double-digit millions. In addition, DEUTZ AG is entering into a cooperation agreement with HORIZON in order to strengthen its position in the attractive service business as well. With more than 80 branches, HORIZON is the largest player in the Chinese construction equipment rental business. It will become a local service partner for DEUTZ, servicing engines in the field and taking over the aftermarket sales business in China. HORIZON is also the ideal partner with regard to digital fleet service solutions. Another element of the new strategy for China is a local contract manufacturing alliance with engine manufacturer BEINEI. This will act as a production hub for the Asian market. The DEUTZ management team is to oversee the manufacturing of approximately 20,000 engines in 2022 at a new factory in Tianjin. In October 2018, DEUTZ AG sold its shares in DEUTZ Dalian, the Chinese joint venture that it had entered into with First Automotive Works (FAW). The new strategy now enables DEUTZ to fundamentally overhaul its market presence so that it can meet the growing demand for sophisticated engines not only in China but also in other Asian markets. On the back of its three pillar growth strategy, DEUTZ is aiming to generate revenue of around half a billion euros in China in 2022.[1] For further information on this DEUTZ AG press release, please contact: Leslie Isabelle Iltgen Senior Vice President Communications & Investor Relations Tel: +49 (0)221 822 3600 End of Media Release Issuer: DEUTZ AG
17.12.2018 Dissemination of a Press Release, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | DEUTZ AG |
Ottostraße 1 | |
51149 Köln (Porz-Eil) | |
Germany | |
Phone: | +49 (0)221 822 0 |
Fax: | +49 (0)221 822 3525 |
E-mail: | ir@deutz.com |
Internet: | www.deutz.com |
ISIN: | DE0006305006 |
WKN: | 630500 |
Indices: | SDAX |
Listed: | Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
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