UP AND RUNNING!
DEUTZ AND CHINA: A CONTINUING STORY OF SUCCESS.
IN THE WORLD’S LARGEST INDIVIDUAL MARKET FOR CONSTRUCTION EQUIPMENT, THE ENGINE MANUFACTURER DEUTZ HAS FURTHER STRENGTHENED ITS POSITION AS A SUCCESSFUL TECHNOLOGY PARTNER.
Business in China is booming. The world’s largest engine market is growing steadily, but at the same time the Chinese government is tightening emissions regulations and driving forward the development of new diesel engines and alternative drive technologies. Thanks to its engineering expertise, its innovative capabilities, and its local presence, DEUTZ is already a valued commercial and technology partner in the Chinese market.
The joint venture with SANY in Kunshan was already operating profitably last year despite the coronavirus pandemic. The production volume increased from 7,000 engines in 2019 to around 20,000 engines in 2020. At the assembly plant, the joint venture produces drives for trucks, construction equipment, and concrete pumps. DEUTZ and SANY are currently building a new engine plant in Changsha that is scheduled for completion by the end of 2021.
“The joint venture with SANY, China’s biggest construction-equipment group, notched up some early success by generating a profit in its first year. The production volume is set to be increased from around 20,000 engines in 2020 to around 40,000 engines in 2021.”
Dr. Ing. Frank Hiller, CEO DEUTZ
At the start of 2021, in the Chinese port of Tianjin, DEUTZ commenced production of the 2.9 engine series in partnership with diesel engine manufacturer BEINEI. The 6.1 series is scheduled to follow. The new factory for local contract manufacturing, where DEUTZ and BEINEI are making engines for lifting platforms, forklift trucks, and smaller construction equipment, serves as a hub for the entire Asian market.
CHINA IV IS COMING.
The new China IV emissions standard will come into force on December 1, 2022 – in the Beijing administrative district as early as December 1 of this year. As a pioneer in the development of sustainable drive systems, DEUTZ is also well prepared for this directive. All its engines that already meet EU Stage V can be certified for China IV with slight modifications – from the D/TD/TCD 2.2 to the TCD 18.0. This is because the new standard incorporates the limits established in the equivalent EU and US regulations for nitrogen oxide emissions and air-polluting particulates.
In addition, China Stage IV prescribes an extensive program of emissions testing and compliance for engines and equipment in the field, to be conducted in close consultation with equipment manufacturers. Under the new rules, construction equipment with an output of 37 kW or more will also need to be fitted with a telemetry terminal that will allow the responsible authorities to remotely monitor certain engine parameters. DEUTZ is, of course, helping its customers in China to meet these new requirements by providing advice and technology.
TIME IS MONEY.
DEUTZ is a company with an international presence and it is committed to making collaboration with its customers worldwide as simple and efficient as possible. For example, it introduced SAP S/4HANA® at its sites in China last year.
DEUTZ is using the IT platform to simplify all its business processes and to significantly improve its pace of innovation and ability to deliver. The structures that it puts in place allow DEUTZ to plan resources in real time and around the clock, to the benefit of DEUTZ’s partners in China: the standardization and flexibility offered by the platform makes collaboration in this fast-growing market much easier.