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21 October 2016

Deutz and Liebherr plan strategic alliance

First publishedon www.AggBusiness.com
Deutz and Liebherr have agreed on the key aspects of a strategic alliance between the two companies. Under this arrangement, Liebherr intends to grant Deutz worldwide sales and service rights for its 200kW-700kW diesel engines for a variety of applications. These engines are being developed for the EU Stage V, US Tier 4, China IV and EU Stage IIIA emissions standards, meeting the future statutory requirements regarding exhaust emissions.

The Liebherr 200kW-700kW manufactured engines will be available to Deutz for series delivery from 2019. Deutz plans to sell them under its own brand to its customers, including via its network of dealers. It is also planned for Deutz to receive exclusive rights for the production of a Liebherr 9litre engine in China. Furthermore, an expansion in the use of Deutz engines in Liebherr's machines up to 150kW is planned.

The move represents something of a change in direction for Liebherr. Until now the firm has been pursuing a policy of developing engines in-house to meet its quality and performance targets. However this change reflects the high costs involved in engine development and the benefit of partnering with a specialist in the field. The move will play to the strength of both companies. Deutz has a particularly modern small-medium sized engine range while Liebherr has focussed on developing medium-large sized diesels.

The agreement between Deutz and Liebherr on the key points of their strategic alliance strengthens their long-standing and successful partnership. The two companies intend to draw up and sign contracts setting out the details of this strategic alliance in due course.

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