DEUTZ Dalian joint venture

We have been operating the DEUTZ Dalian joint venture – in which our Chinese production activities are concentrated – with the First Automotive Works Group, one of China’s leading truck manufacturers, since 2007. In the joint venture, we produce 3 to 8 litre diesel engines, mainly for automotive and industrial applications for the local market. Local production ensures that we have the proximity to our customers that we need.

In 2017, unit sales in the DEUTZ Dalian joint venture fell by 5.6 per cent to around 64,000 engines. By contrast, revenue rose by 0.9 per cent to €305.6 million. Adjusted for exchange rate effects, the increase in revenue was 5.2 per cent. The company, accounted for under the equity method, contributed €1.9 million to earnings (2016: negative impact of €5.7 million).