DALIAN, Liaoning – Deutz FAW (Dalian) Diesel Engine Co., Ltd., a 50:50 joint venture between FAW Jiefang Automobile Co., Ltd. and Deutz AG, a German engine manufacturer, started building a new engine plant in the northeastern port city of Dalian on April 12.
The new plant represents an investment of ¥1.25 billion ($191 million). It will be capable of producing 100,000 units of 3.0-liter and 100,000 units of 4- to 7-liter diesel engines annually after going into operation by the end of 2012, bringing the company’s total capacity to 300,000 units.
These engines will be used in commercial vehicles and industrial applications such as construction equipment and agricultural machinery, the company said.
Sitting on a 50,000 square-meter site, the Dalian plant will import 458 sets of new manufacturing equipment and will have six production lines including cylinder block, cylinder head, assembly and commissioning.
To meet vehicle emission standards and to provide top quality, high performance, energy efficient and environmentally friendly products to their customers, Deutz and FAW Jiefang will further upgrade the JV’s products by introducing five series of new products and technologies used in trucks, buses and engineering machinery.
In July 2010, Deutz FAW (Dalian) received approval from the Vehicle Certification Agency (VCA), an executive agency of the United Kingdom Department for Transport, to export engines to the European market.
FAW Jiefang, a wholly-owned subsidiary of FAW Group, now ranks third in China’s heavy-duty truck market after Dongfeng and CNHTC.
Deutz generates annual sales of around €1.3 billion ($1.88 billion) and is one of the world’s leading independent manufacturers of diesel and gasoline engines.