Ad-hoc | 18 December 2006 07:18
DEUTZ AG / Joint Venture/Alliance
Ad hoc announcement according to § 15 WpHG transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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DEUTZ launches joint venture in China
DEUTZ AG and FAW Jiefang Automotive Co., Ltd., which is based in Changchun,
China (FAW), a wholly-owned subsidiary of China First Automobile Works
Group Corp. (FAW Group), have today signed a contract to set up a joint
venture to manufacture and sell diesel engines. DEUTZ and FAW will each own
a 50% stake in the joint venture, which will operate under the name of
DEUTZ (Dalian) Engine Co., Ltd. (DEUTZ Dalian). DEUTZ will assume
industrial leadership of the company and will invest the equivalent of ?60
million in the new company. The joint venture will be based in Dalian. The
contract is still subject to the usual approvals for transactions of this
nature.
The establishment of DEUTZ Dalian will considerably expand the co-operation
that has already existed for over 10 years between DEUTZ and FAW Group. FAW
will contribute to the joint venture particularly its new cutting-edge
plant that manufactures licensed DEUTZ engines. Production commenced
earlier this year. Its initial annual capacity as from 2007 will be 50,000
engines, and this could eventually be increased to 100,000 engines. It will
manufacture engines with a capacity of between 4 and 7 litres that meet the
current emission standards. The engines will be used in commercial vehicles
and in industrial applications such as construction equipment and
agricultural machinery. They will mainly be sold to international DEUTZ
clients in Asia and to the FAW Group. The joint venture will also have
sufficient capacity to manufacture a further 10,000 or so local engines for
the FAW Group and the local Chinese market.
This investment is a tangible expression of the growth and
internationalisation strategy being pursued by DEUTZ. The co-operation with
FAW will also strengthen DEUTZ' position in the global commercial-vehicle
segment. After Cologne, the new site at Dalian will be DEUTZ' largest
production facility, and the synergies from the production sites will
improve the DEUTZ Group's cost base.
Further information about DEUTZ AG is available at http://www.DEUTZ.com/.
Contact: Andrea Bleesen
Tel.: +49 (0)221 822 2492
Fax: +49 (0)221 822 2116
Email: bleesen.a@deutz.com
DGAP 18.12.2006
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Language: English
Issuer: DEUTZ AG
Deutz-Mülheimer Str. 147-149
51063 Köln Deutschland
Phone: +49 (0)221 822 0
Fax: +49 (0)221 822 3525
E-mail: info@deutz.com
WWW: www.deutz.com
ISIN: DE0006305006, DE000A0BNUN0, DE000A0DMKV2, DE000A0HN461
WKN: 630500, A0BNUN, A0DMKV, A0HN46
Indices: MDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard), Düsseldorf;
Freiverkehr in Berlin-Bremen, Hannover, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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