RCS - Deutz AG - DEUTZ inks cooperation with TAFE

Deutz AGAnnouncement

02/07/2024 08:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240702:nRSB6956Ua&default-theme=true

RNS Number : 6956U  Deutz AG  02 July 2024

DEUTZ inks cooperation with TAFE, India's leading agricultural group

01.07.2024 / 19:47 CET/CEST

The issuer is solely responsible for the content of this announcement.

·      Advantages for German locations due to broader supplier base

·      Cooperation to be extended to green drives

Cologne, July 1, 2024 - DEUTZ is adding another cornerstone to its Dual+
strategy, which includes both the further development of alternative drive
systems and the expansion of the internal combustion engine business. The
cooperation with the Indian agricultural group TAFE Motors and Tractors
Limited announced today allows DEUTZ to expand its business in India, tapping
into one of the fastest growing markets worldwide. TAFE Motors is the
subsidiary of TAFE, the third largest tractor manufacturer in the world. In
2023, the Indian economy grew by around 6 to 7 percent and it is expected that
India's gross domestic product (GDP) will quadruple by 2050. The agricultural
and construction sector will play a major role in achieving this strong
growth.

As the beginning of a long-term cooperation, TAFE Motors will manufacture up
to 30,000 DEUTZ-engines in 2.2 Liter (50-75 hp) and 2.9 Liter (75-100 hp)
under license. The aim is to augment and complement the wide range of engines
made by the Group across emission standards. TAFE Motors will produce engines
to suit growing demands of the Indian market as well as for DEUTZ's
requirements. The engines will be produced in TAFE Motors' modern
manufacturing facility at Alwar, Rajasthan in India.

DEUTZ will use the Indian manufacturing base to market its engines in
neighboring markets (esp. APAC), benefitting from advantages in production and
logistics.

"The strategic cooperation with TAFE Motors secures DEUTZ access to growing
markets with strong potential and long-term prospects," explains DEUTZ CEO,
Dr. Sebastian C. Schulte. "It also enables us to continue producing at
competitive costs in the future and makes us less dependent on the existing
supplier landscape, which is becoming increasingly challenging due to the
technological shift and geopolitics".

The cooperation gives DEUTZ the opportunity to expand its supplier base to
ensure a more efficient and more resilient production. It will also reduce its
dependence on supply chains in geopolitically tense regions - without
sacrificing the corresponding cost benefits. This particularly benefits
DEUTZ's German production sites.

Speaking on behalf of TAFE Motors, Sandeep Sinha, CEO of TAFE Motors said,
"This strategic cooperation between TAFE Motors and DEUTZ will be mutually
beneficial, as it will offer access to shared resources and technologies to
produce engines that complement TAFE Motors' and the Group's existing range to
meet the demand for both domestic and international markets. This cooperation
will also offer DEUTZ access to high-quality engines at best cost for new
applications in Indian and relevant overseas markets".

Both parties are exploring opportunities to expand the cooperation to green
drives.

For further information on this press release, please contact:

 Mark Schneider

Head of Investor Relations, Communications & Marketing
 

Tel: +49 (0)221 822 3600
 

Email: Mark.Schneider@deutz.com (mailto:Mark.Schneider@deutz.com)

 

 About DEUTZ AG

DEUTZ AG, a publicly traded company headquartered in Cologne, Germany, is one
of the world's leading manufacturers of innovative drive systems. Its core
competencies are the development, production, distribution, and servicing of
drive solutions in the power range up to 620 kW for off-highway applications.
The current portfolio extends from diesel, gas, and hydrogen engines to
all-electric drives. DEUTZ drives are used in a wide range of applications
including construction equipment, agricultural machinery, material handling
equipment such as forklift trucks, stationary equipment such as generator
sets (gensets) and lifting platforms as well as commercial and rail vehicles.
With over 5,000 employees worldwide and around 1,000 sales and service
partners in more than 120 countries, DEUTZ generated revenue of over €2.1
billion in the 2023 financial year. Further information is available
at www.deutz.com
(https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=266becd3f383fa416276b68bdaea99f5&application_id=1937313&site_id=news_data&application_name=news)
.

 

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRARBMPTMTIMBJI