Deutz reports plans to increase its revenue targets for China as it continues to make “good progress” with its growth strategy in the country.
Now that the company and Chinese diesel engine maker Beinei’s new factory for contract manufacturing has been completed, local production of the 2.9 and 6.1 engine series can commence in early 2021 as planned, the company says.
Engines for aerial work platforms, forklift trucks, and smaller construction equipment will be made at the site in Tianjin, which will serve as the production hub for the Asian market.
Deutz reports its joint venture with China’s construction equipment manufacturer Sany is also progressing well and has already proved profitable this year. The company adds the objective is to raise the annual production volume of approximately 7,000 achieved in 2019 to around 20,000 engines in 2020. The Deutz-Sany assembly plant in Kunshan produces engines for trucks, construction equipment, and concrete pumps.
The two joint venture partners are currently building a new engine plant in Changsha, which is scheduled to be completed at the end of 2021. The partnership has received subsidies of approximately US$37 million from the city of Changsha to fund the project.
“The implementation of our China strategy is progressing according to plan,” says Deutz Chief Executive Officer Dr. Frank Hiller. ”The fact that current demand means we have been able to increase the 2022 revenue target for China from around €500 million (US$583 million) to roughly €800 million (US$933 million) is a tremendous achievement, particularly given the challenges presented by the coronavirus pandemic.”