The previously announced joint venture between Deutz and Sany China has been approved.
Deutz and Sany announced the joint venture in June last year – see: Deutz to expand in China – but required necessary approvals by the relevant competition authorities before it could become official.
Deutz will now take over the manufacturing of Sany’s heavy truck engines, with initial projections to build up to 75,000 engines in 2020 from a new production facility in Changsha, Hunan.
As well as Deutz investing ‘a mid-double digit million euro amount’ in the joint venture, the province of Hunan has also supported with a contribution or ‘several tens of millions of US dollars’ in additional funding.
Deutz chief executive Frank Hiller, said: “Establishment of the joint venture as part of our new China strategy is proceeding to plan. 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.”