DEUTZ adds value in the many international markets in which it operates. This presents it with a wide range of challenges. As an expert partner, we draw on our considerable experience and strong culture of innovation to meet new market trends and ever stricter emissions legislation, always focusing on our customers’ needs before anything else.
Meeting customers’ needs around the globe
Every application, every industry and every region needs a different kind of engine, from workhorses suitable for continuous use to compact engines powered by various types of fuel. The customer’s need for flexibility and reliability is always the highest priority for DEUTZ.
Emissions standards in Europe require the use of a different exhaust aftertreatment system to those used in the US or China, for example. Moreover, the greater complexity of this system cannot be allowed to impact too heavily on the dimensions of the engine. DEUTZ engines are flexible enough to meet the different emissions standards while taking up no additional space. The broad power output range of our engines (up to 620 KW) means that they also offer a high degree of flexibility with regard to equipment and application type. Furthermore, our customer offering features a strong and high-performing service network that helps ensure reliability in the field.
Thanks to DEUTZ’s new modular engine system, we will be offering our customers even more flexibility going forward. Within a power output range that is specific to individual applications, our customers will be able to choose between various drive technologies, from the latest efficient diesel engines and engines that use alternative fuels to all-electric systems and hybrids for a zero-emissions strategy.
Compact, efficient, strong, clean and innovative. DEUTZ is leading the way in high-quality drive systems for applications in industry, agricultural machinery and commercial vehicles.
Strict emissions standards bring greater complexity, but we are able to support our customers with our well-established expertise in systems integration and exhaust aftertreatment and by offering alternative drives.
DEUTZ focuses on long-term partnerships characterised by absolute trust in the products and services provided. Customer satisfaction is, after all, the only way to secure existing business and exploit new opportunities.
A strong partnership, going all the way back to 1969
KION and DEUTZ have enjoyed a long and close relationship. Since 1969, Linde Material Handling, a KION premium brand, has been installing diesel engines made by DEUTZ AG in its forklift trucks. Today, these engines are mainly found in the H60 to H80 Linde models. Thanks to the DEUTZ TCD 4.1 engine that they use, these forklift trucks are able to move goods weighing up to eight tonnes.
Fendt is a manufacturer of agricultural machinery with a full-line product programme. Since 1997, the brand has been part of the US-based AGCO Group, a global leader in the development, production and distribution of agricultural machinery. The AGCO premium brand Fendt uses heavy-duty DEUTZ engines with capacities of up to 7.8 litres for large tractor models.
HAMM and DEUTZ: a partnership dating back more than 100 years. Nowadays, the specialist for road construction and earthworks mainly uses compact DEUTZ engines in the 2.9 to 6.1 litre capacity range, for example in tandem rollers that are used around the world to create high-quality asphalt surfaces for everything from airports to Formula 1 racetracks. These ultra-modern combustion engines are adaptable to changing needs and emit very low levels of pollutants. HAMM rollers have been presented with multiple awards in recognition of this combination of sustainable engine technology with an ergonomic, user-friendly design.
Manitou, the leading OEM in the material handling sector, has enjoyed a long and close relationship with DEUTZ that has been built on strong technology. It has become the first E-DEUTZ project partner to have its equipment fitted with DEUTZ technology. One of its telescopic handlers has been fitted with a hybrid drive and a second with an all-electric drive.
SUNBELT RENTALS AND DEUTZ – RELIABLE PARTNERS
Sunbelt Rentals, based in Fort Mill, South Carolina, is one of the largest equipment rental companies in North America. It offers its customers a broad product portfolio ranging from backhoe loaders, telescopic handlers and forklift trucks to pumps and generators. DEUTZ is an important strategic partner and has been supporting the company for many years. Suppliers mean more than just business-to-business, they are real partners. Sunbelt Rentals particularly values DEUTZ’s reliability.
New strategy in china
DEUTZ has adopted a new strategy for its activities in China. Under the three-pillar strategy, we will be entering into partnerships with a trio of major Chinese companies in order to benefit from the rapid growth in the world’s largest individual market for engines.
OUR NEW CHINA STRATEGY
- China’s biggest construction equipment group
- Major customer
- Joint venture partner
- Largest player in the Chinese construction equipment rental business
- Service partner
- Partner for digitalisation
- First manufacturer of diesel engines in China
- Contract manufacturing alliance
- Ability to satisfy additional demand in Asia
The first pillar of the strategy is a new joint venture with SANY, China’s biggest construction equipment group. DEUTZ will be the majority shareholder in the new company with a stake of 51 per cent. Initially, the plan is to supply SANY with around 75,000 new engines for off- and on-road applications in 2022. These engines will comply with the China IV and China 6 emissions standards respectively. As one of the leading engine manufacturers in the off-highway segment, we will thus be stepping up our activities in the on-highway segment as well. Our initial investment in the new joint venture is in the mid double-digit millions of euros.
Under the second pillar of the strategy, we are entering into a cooperation agreement with HORIZON in order to also strengthen our position in the attractive service business. With more than 80 branches, HORIZON is the largest player in China’s construction equipment rental business. It will become our local service partner, servicing engines in the field and taking over the aftermarket sales business in China. HORIZON is also the ideal partner with regard to digital fleet service solutions.
The third pillar of our new strategy for China is a local contract manufacturing alliance with engine manufacturer BEINEI. This will act as a production hub for the Asian market. The DEUTZ management team is to oversee the manufacturing of approximately 20,000 engines in 2022 at a new factory in Tianjin.
As part of our strategic realignment in China, we are also putting in place a new local management team with a great deal of expertise and many years’ experience in the Asian market. Our new Asian headquarters will be located in Shanghai. We will also be reconfiguring all other parts of the value chain: purchasing, supplier management, logistics, application development and sales and service.
Thanks to our new partners, we now have the ideal production network for efficiently supplying local customers with DEUTZ drive systems. At the same time, we are expanding our service network and will systematically enhance it with digital solutions.
Our targets for 2022
>2€ billion revenue
7-8% EBIT margin (before exceptional items)
The new strategy will now enable us to fundamentally overhaul our market presence so that we can meet the growing demand for sophisticated engines not only in China but also in other Asian markets. On this basis, we will be looking to generate revenue in China of around half a billion euros in 2022.