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The engine company. DEUTZ®

CHINA RELIES ON DRIVE TECHNOLOGY “MADE IN GERMANY”

DEUTZ AND CHINA’S LARGEST CONSTRUCTION MACHINERY MANUFACTURER SANY ARE BUILDING A HIGH-PERFORMANCE ENGINE ASSEMBLY PLANT IN THE HUNAN PROVINCE.

China is the world’s largest single market for construction machinery. The application range is correspondingly large in order to make a significant contribution to environmental and climate protection with clean engine technology. Chinese legislation is already making rapid progress in the area of emissions regulation. What is often missing, however, are highly developed drives that can meet the new standards.

With China IV, the nitrogen oxide and particulate mass limit values are being significantly reduced compared to China III. Moreover, a new limit value for the number of particles will be introduced that requires the technological use of a diesel particulate filter – similar to EU Stage V legislation. In addition, the new China VI Stage (which largely complies with EU Stage Euro VI) will be introduced in the heavy-duty onroad sector, initially for urban commercial vehicles and later nationwide.

These official figures represent an enormous challenge, especially since the Chinese provisions are rapidly catching up to the European standards. Conversely, this also opens up attractive opportunities for experienced manufacturers to capture market share as technology partners in China and simultaneously promote clean and sustainable mobility locally to relieve the climate and the environment.

China’s largest construction machinery manufacturer SANY, for example, relies on engine expertise from Cologne. As part of a joint venture in which DEUTZ holds 51 percent, a new production site is currently being built in Changsha, which is expected to supply up to 75,000 engines for SANY by 2022. For comparison DEUTZ currently supplies a total of around 10,000 engines to China. There is still more growth potential in terms of unit sales. Dr. Frank Hiller, CEO of DEUTZ AG, explains: “We assume that demand in China will continue to rise. We can also serve other customers locally through our joint venture. The Chinese government is consistently pushing enhancement of diesel engines and alternative drive concepts such as electrification, sustainable fuels, and hydrogen drives. At DEUTZ, we’re open to technology in all these areas, which means we’re perfectly equipped for the Chinese market.”

Such a broad range of technologies is in great demand in the up-and-coming Middle Kingdom and opens many a door. The joint venture between DEUTZ and SANY is part of SANY’s “Intelligent Heavy Truck” project, a major project within the framework of SANY’s digitalization strategy. This means that, in addition to various non-road applications, DEUTZ will take over engine production for SANY in the heavy trucks sector.

“China is focusing on sustainable mobility – and companies like SANY rely on experienced partners such as DEUTZ. We provide the best possible support for this path with highly developed drives in line with local and global sustainability. This is a real win-win situation for us, as growth and a positive impact on the environment and climate can be perfectly fused here,” says Dr. Frank Hiller.

Liang Wengen, CEO of SANY Group

SANY relies on engine know-how from Cologne

Contract signed between SANY and DEUTZ with representatives of the local government of Changsha

Dr. Frank Hiller, CEO of DEUTZ AG

The contract was signed as part of the ground-breaking ceremonies at the production site