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CHINA: Deutz plans engine output increase

By just-auto.com editorial team | 18 September 2006

Truck and heavy equipment diesel engine manufacturer Deutz plans to considerably expand production in China by establishing a second joint venture in the country, according to aktiencheck.de.

"Long-term we want to produce 100,000 engines a year in China for the local market. Currently we are building around 20,000," Gordon Riske, chairman of the company told 'Euro am Sonntag' newspaper.

To this end Deutz has already entered into negotiations to establish a second joint venture, although there are no indications yet was to when production will start.

In the first six months of this year Deutz produced 108,932 diesel engines, up 13% on a year ago. Deutz engines are mainly used in construction and other off-highway vehicles, although some are used in heavy trucks.

Deutz recently started producing a truck engine developed in conjunction with Volvo and Renault. Between 6,000 and 8,000 of these engines will be built this year, said Riske.