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Tognum Begins China Venture

Posted on September 9, 2010

Tognum and China North Industries Group Corp. (Norinco) have announced the opening of a joint venture involving the assembly of large, high-speed MTU diesel engines and emergency standby generator sets. Datong is approximately 185 miles west of Beijing in Shanxi Province.

Tognum subsidiary MTU Asia Pte. Ltd. and the Norinco Group company Shanxi Diesel Engine Industry Corporation (SDEIC) are joint venture partners. SDEIC has been manufacturing MTU engines under license since 1986.

“This joint undertaking sees the consistent continuation of Tognum’s strategy of regional expansion,” said Tognum CEO Volker Heuer. “It provides ideal conditions for the creation of a strong position in the marketplace for emergency standby gen-sets in Chinese nuclear power plants and for engines for the Chinese Navy and Coast Guard.”

The cooperation with Norinco is part of Tognum’s “Asia Strategy” which is aimed at significantly increasing the Group’s Asia revenues in coming years. The business expansion program in Asia also included the development of an engine production facility in Suzhou in 2006 and the relocation of the Asia headquarters to Shanghai in 2007.

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