Heavy Equipment Guide Logo

DEUTZ sells stake in Chinese joint venture

DEUTZ sells stake in Chinese joint venture

DEUTZ AG announced on 3 July 2018 that it intends to fully withdraw from the DEUTZ Dalian joint venture with First Automotive Works (FAW) in China. DEUTZ AG has now sold its 50 per cent stake in the company to the joint venture partner FAW following approval from the Supervisory Board and agreement on the necessary contracts. The parties have agreed not to disclose any commercial details. The transaction is subject to approval by the Chinese authorities.

Despite ending the long-running joint venture, DEUTZ and FAW will continue to collaborate on a basis of a customer-supplier relationship, and DEUTZ can still procure engines for off-highway applications from FAW upon request. To this end, the two companies have reached an agreement to explore further possibilities for collaboration in future. The withdrawal from the DEUTZ Dalian joint venture is not expected to significantly impact on earnings this year.

"This step allows us to realign our Chinese activities. We are now reorganising our presence in China in order to generate stronger growth and be even more successful there. Talks on new alliances with major local partners in the construction equipment and agricultural machinery industries have already reached an advanced stage," says Chairman of the DEUTZ Board of Management, Dr Frank Hiller. The Company plans to publish further details in the current year.

Company info

3883 Steve Reynolds Blvd
Norcross, GA
US, 30093

Website:
deutzusa.com

Read more

Related Articles

Sponsored Brought to you by: Bobcat Company Logo

THE BOBCAT E88: STRENGTH IS ON YOUR SIDE

As one of the latest models in the R2-Series excavator lineup, the Bobcat® E88 delivers durability, performance and quality for more productivity. Technically speaking, it's a compact machine, but it brings big performance with its redesigned engine and optimized lift performance, plus undercarriage and counterweight improvements. All these enhancements make this excavator one of the highest-performing models in its size class. With impressive over-the-side lift capacity, you can dig with greater confidence over the side of the machine. Put it to the test against similar models from other manufacturers. You'll see that the E88 can outwork the competition.

Learn more