Deutz sees Asian market as key to company success

Deutz is set to increase its presence in Asia in a bid to achieve greater overall company growth despite the ongoing tough global economic climate. The German diesel engine manufacturer says its plans to create a joint venture in China with Volvo are “making headway”. The firm also says its recently established joint venture with Shandong Changlin Machinery Group in Linyi, in the eastern Chinese province of Shandong, is “rapidly gaining momentum”.
August 13, 2012 Read time: 2 mins
201 Deutz is set to increase its presence in Asia in a bid to achieve greater overall company growth despite the ongoing tough global economic climate.

The German diesel engine manufacturer says its plans to create a joint venture in China with 2394 Volvo are “making headway”. The firm also says its recently established joint venture with Shandong 2716 Changlin Machinery Group in Linyi, in the eastern Chinese province of Shandong, is “rapidly gaining momentum”.

Deutz believes its commercial success in 2012 will be affected by weaker customer demand due to the slowdown of the world’s economy. The firm sold 93,853 engines in the first six months of 2012, down 12.4% on the same period of last year. At €344.1 million, Deutz Q2 2012 revenue rose slightly compared to the €336.9 million achieved in Q1 2012. Meanwhile, operating profit came to €11.3 million in Q2 2012, which was €1 million higher than in the first three months of the year. The second-quarter earnings were said by Deutz to be reduced by around €5 million owing to “one-off items” in connection with the replacement of the company's previous funding facility, as well as impairment losses and higher start-up costs of joint ventures.

Speaking about the company’s Asian expansion plans and performance targets, Dr Helmut Leube, chairman of Deutz’s management board, said: “In the first half of 2012 we were unable to build on our impressive start to the year. This was largely due to the macroeconomic situation, which is still afflicted by considerable uncertainty. Nonetheless, we are confident that Deutz is well positioned for the future and will continue to grow profitably over the medium to long term. Our new joint venture in Shandong is rapidly gaining momentum and should soon enable us to achieve our ambitious goals in Asia. Our plans to set up a joint venture in China with Volvo are also making good headway. In addition, we have opened new service centres in Moscow and Madrid in order to expand our service-related business."

For more information on companies in this article

Related Content

  • Komatsu PC490HRD-11 K100 goes to work
    September 20, 2021
    In June 2021, Komatsu announced a new variant of their PC490HRD-11 high reach demolition machine featuring a brand-new boom connection system. Named “K100”, the new system allows the operator to change the configuration of the machine singlehandedly in only a few minutes, without leaving the comfort of the operator cab. One of the first of these new machines recently went to work in Bradford, UK.
    Read More
  • Rockster crushers help Austrian company Polixmair boost efficiency
    July 7, 2016
    "Greater flexibility, higher performance, faster implementation of large projects," is how Ferdinand Polixmair described the challenges of the increasingly fast-moving mineral processing business. "We can handle up to four major projects in parallel,” explained company owner Ferdinand Polixmair, whose company in Gmunden in upper Austdria has eight employees. “We have the team and the machines available. Moreover, we have no regional restrictions, we cover the whole of Austria." Polixmair had two of
    Read More
  • Samoter-Asphaltica 2014 sparks greater Italian optimism
    July 3, 2014
    The recent co-located Samoter and Asphaltica exhibitions at VeronaFiere in Verona, Italy, have been hailed a success by organisers, exhibiting companies and trade delegations, after more than 40,000 visitors, including thousands from outside Italy, attended the combined 445 exhibitor company-strong four-day events. There is no doubt, as Guy Woodford reports, they provided a timely boost to an Italian construction equipment manufacturing sector enduring tough times
    Read More
  • Hitachi helps to build a better Stockholm
    November 19, 2024
    The ZE135 electric excavator has been put to the test on a high-profile development in the Stockholm Green Innovation District. This new growth area for technology and sustainability is being developed with the goal of renewing and building urban spaces with climate-smart solutions.
    Read More

Highlighted Content