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DEUTZ AG Annual Report 2020

Pole position in the market of the future

DEUTZ is unlocking markets of the future and additional potential for growth by pursuing a systematic internationalization strategy and acquiring strategically relevant companies.

DEUTZ continued to drive forward its international growth last year. In China, the biggest individual market for construction equipment in the world, the Company was able to strengthen its position as an experienced technology partner and raise the revenue target for 2022 from the original figure of around €500 million to around €800 million in light of existing demand. The joint venture with SANY in Kunshan is already operating profitably. The production volume increased from 7,000 engines in 2019 to around 20,000 engines in 2020. At the assembly plant, the joint venture produces engines for trucks, construction equipment, and concrete pumps. All the while, the collaboration partners remain focused on growth. DEUTZ and SANY are currently setting up another engine plant in Changsha that will start production in 2022.

DEUTZ and SANY also reached a milestone in 2020 when a brand-new truck model was fitted with a jointly developed engine for the first time. The Kingway 435 truck unveiled by SANY in China marks the return of DEUTZ to the on-highway business. And the figures already show that this model is a bestseller: 1,000 trucks were sold within just 39 seconds of the Kingway 435 being presented.

“We were able to raise our revenue target for 2022 in China from around €500 million to around €800 million.”

DR-ING. Frank Hiller

Chairman of the Board of Management of DEUTZ AG

Further north, in the Chinese port city of Tianjin, DEUTZ kicked off production of the 2.9 engine series in collaboration with diesel engine manu­facturer BEINEI at the start of 2021. The 6.1 series is scheduled to follow. The new factory for local contract manufacturing, where DEUTZ and BEINEI are producing engines for lifting platforms, forklift trucks, and smaller construction equipment, serves as a hub for the Asian market.

The Kingway 435 – a milestone in the collaboration between DEUTZ and SANY

Expansion of DEUTZ Power Centers in the USA

More service for even greater customer satisfaction. This was the guiding principle for the firm
positioning of the DEUTZ Power Centers (DPCs) as independent sales and service outlets. The aim is to boost growth in the USA. The new ‘DEUTZ only’ network focuses on service business relating to DEUTZ products. In addition to the four existing DPCs in Charlotte (North Carolina), Kansas City, St. Louis (both Missouri), and Chicago (Illinois), DEUTZ Corporation opened two further DPCs in the cities of Jacksonville and West Palm Beach (both Florida) in 2020. All sites have fully equipped service vehicles that are used to provide an around-the-clock mobile field service. At the Power Centers, DEUTZ employees service and repair construction machinery, conveyors, and material handling equipment. As well as new engines, Power Center customers can also purchase remanufactured engines under the local DEUTZ Xchange program. In addition to DEUTZ service work, the DPCs offer the full range of equipment servicing to a broad variety of end users.

The global expansion of the high-margin service business is a key growth driver for the Company. The comprehensive range of services provided by DEUTZ around the world with the help of more than 800 sales and service partners in over 300 countries was further expanded in 2020. In October, DEUTZ acquired the subsidiaries DEUTZ Austria GmbH, Motorcenter Austria GmbH, and Pro Motor Servis CZ s. r. o. of Vienna-based PRO MOTOR Beteiligungsgesellschaft mbH.


Better service – more growth

“The new services of the DEUTZ Power Centers unlock multiple benefits. The significant improvement in service strengthens both customer loyalty and the DEUTZ brand image. The DPCs are the direct sales channel to users of our engines and service products, and we are now within even closer reach for our customers. The new, holistic service strategy covering the entire engine lifecycle opens up new growth potential for us in the US market.”

Robert T. Mann
President and CEO of DEUTZ Corporation