Tag Archives: DEUTZ

DEUTZ to supply SANY with China emission-compliant engines

DEUTZ has entered a joint venture agreement with SANY that will see the Germany-based company take over production of the China construction equipment manufacturer’s current engine range.

DEUTZ says it will be investing a mid-double digit million euro amount in the new joint venture and will hold a majority share of 51%. The closing of the transaction is expected by the end of the year. This agreement follows a memorandum of understanding the two companies signed in December last year (pictured).

The JV is aimed at supplying SANY with around 75,000 new engines in 2022, all of which will comply with the China IV emissions standard for off-road applications and China 6 for on-road applications, DEUTZ said.

“In addition to the successful conclusion of the joint venture deal with SANY, other elements of the international growth strategy are also going to plan in China,” DEUTZ said.

These include the strategic alliance with BEINEI to carry out production locally, with the DEUTZ management team overseeing the manufacture of about 20,000 engines for the Asia market in 2022 at a new factory in Tianjin, China. The ramp-up is set for 2020, when around 2,000 to 3,000 engines are to be produced, DEUTZ said.

“Further progress has also been achieved in the partnership between DEUTZ and FAR EAST HORIZON to expand the local service business,” DEUTZ said. “With more than 80 branches, FAR EAST HORIZON is the largest player in China’s construction equipment rental business and the ideal partner to meet the growing demand for innovative engines. DEUTZ customers will soon be able to benefit from digital services such as a shared online shop.”

DEUTZ CEO, Dr Frank Hiller, said: “The joint venture agreement marks an important milestone in the implementation of our new China strategy. We are now ideally positioned to take advantage of the rapid growth in the world’s largest individual market for engines.

“The alliances with our local partners will enable us to significantly increase our local presence for engines and we now have access to an attractive production network that will enable us to efficiently meet customer demand in the region. We can also tap into an extensive service network that we will systematically enhance with digital solutions. In an initial stage, we aim to achieve revenue of around €500 million ($550 million) by 2022.”

DEUTZ said the Chinese engines market has grown steadily in recent years and the uptrend is set to continue for some years to come. “Growth of up to 5% is forecast in China’s construction equipment application segment in 2019, while in material handling it is set to be up to 10%.”

DEUTZ to add hydrogen engines to zero-emission vehicles blueprint

DEUTZ AG and Munich-based start-up KEYOU have agreed to build on their existing partnership and jointly develop commercially viable carbon-neutral hydrogen engines for off-road and on-road applications.

The letter of intent, which will also include hydrogen engines for power generation, could see the two firms bring these engines to production readiness.

Underground mining equipment manufacturers such as GHH Fahrzeuge use DEUTZ engines in their LHDs.

DEUTZ said: “As a leading global manufacturer of innovative drive systems, DEUTZ is seeking to play a pioneering role in the development of high-quality, eco-friendly and efficient engines.

“Alongside the E-DEUTZ strategy, which launched last year and has been pursued with purpose ever since, the collaboration with KEYOU represents a further step forward in the advancement of alternative drive technologies and fuels.”

DEUTZ CEO, Dr Frank Hiller, said: “The use of alternative fuels such as hydrogen is growing in importance. We believe that this drive solution will be a valuable addition to our electrification strategy and play an integral role in the zero-emission vehicles of the future.”

By working on the development of a hydrogen combustion engine, DEUTZ is also offering an alternative to fuel-cell technology, it said. The company’s expertise in combustion engines is being combined with KEYOU-inside technology, which can convert conventional production engines to run on hydrogen. “The technology is extremely scalable, both for on-road and off-road applications, and it can be used in a range of hybrid configurations, including in combination with electric drives,” DEUTZ said.

KEYOU has developed a prototype for its KEYOU-inside technology that can turn a conventional diesel engine into a drive based on state-of-the-art hydrogen technology, according to DEUTZ.

DEUTZ provided support as a development partner, supplying the engine – one of its standard six-cylinder models – and sharing its engineering expertise. The resulting hydrogen combustion engine is extremely cost-efficient, which makes it an attractive alternative to electric drives, fuel-cell drives and other zero-emission systems, the company said.

KEYOU’s first 7.8-litre prototype DEUTZ engine was unveiled to the public in 2018 at the Bauma China trade fair and will also be showcased in April 2019 at the Bauma fair in Munich, Germany.

Specific pilot projects with vehicle manufacturers and end users are in the planning stage, with the appearance of the first prototype vehicles expected in the first half of 2020. The aim is to bring them to production readiness by 2021/22.

Alvaro Sousa, CTO of KEYOU, said: “Our new KEYOU-inside H2 combustion technology is not only cost-efficient, robust and powerful, but it is also perfect for use with DEUTZ engines thanks to its high degree of scalability.”