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Industry NewsDeutz Announces Third Engine JV in ChinaJanuary 12, 2012 Deutz AG and Shandong Changlin Machinery Group Co., Ltd., the Chinese manufacturer of agricultural machinery and construction equipment, have signed an agreement to set up a joint venture for the production of engines. The joint venture, which will trade under the name of Deutz (Shandong) Engine Co., Ltd. and whose day-to-day management will be performed by Deutz, will manufacture the Deutz 2011 series of diesel engines beginning in 2013. The engines are designed for use in agricultural and construction equipment, as well as industrial applications. By producing these engines with displacements of less than 4.0 L, Deutz said it is significantly scaling up its operations in China, where the Deutz (Dalian) Engine Co., Ltd. joint venture with FAW has been manufacturing Deutz branded 4.0 to 8.0 L engines since 2007. Deutz AG will have a 70% stake in Deutz (Shandong) Engine Co., Ltd., which will be based in Linyi in Shandong province, with Shandong Changlin Machinery Group Co., Ltd. owns the remaining 30%. The Linyi plant is being designed for an annual capacity of around 65,000 engines. Deutz (Shandong) Engine Co., Ltd. is the third joint venture that Deutz AG has in China. Deutz AG and FAW Jiefang Automotive Co., Ltd. operate Deutz (Dalian) Engine Co., Ltd., while Deutz and Weichai Power have the Weifang Weichai-Deutz Diesel Engine Co., Ltd. joint venture in Weifang. Deutz AG is also represented in the form of a sales and service company in Beijing.
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