German Deutz to set up JV in China

German heavy engine producer Deutz AG (ETR:DEZ) said today that it will set up a joint venture in China together with Chinese agricultural machinery and construction equipment Shandong Changlin Machinery Group.

Deutz will hold a stake of 70% in the joint company, while Shandong Changlin Machinery Group will own the remaining 30%.

The new joint venture, which is called Deutz (Shandong) Engine Co Ltd and is Deutz' third joint venture in China, will manufacture engines for use in agricultural machinery, construction equipment and industrial applications.

The Chinese market offers the greatest potential for growth in Asia for Deutz, the company's CEO Helmut Leube said.