▲ Dong-youn Sohn, CEO of Doosan Infracore (fourth from left) and Wang Gui Min, Chairman of Lovol Heavy Industry Co,, Ltd. (third from right) pose for a photo on November 22, 2017 after signing the JV agreement at Lovol's engine plant in Tianjin, China.
Doosan Infracore has just signed a joint venture (JV) agreement with Lovol Heavy Industry Co,, Ltd. (Lovol), the biggest agricultural machinery manufacturer in China.
The two companies will make a 50:50 investment in the joint venture (JV) with the focus on Doosan Infracore's accumulated engine technologies and mass-production know-how and Lovol's production facilities and local business competency. The JV will be set up in China under the name 'Lovol Doosan’ at the beginning of 2018.
Lovol Doosan will produce the G2 Engine, an eco-friendly high-efficiency compact engine that Doosan Infracore has developed on its own, after adapting it to local requirements including China’s GHG emissions standards, and will supply it for the agricultural equipment manufactured by Lovol, among other clients. The JV aims to actively seek entry to other emerging markets with emissions standards similar to those of China, as well as to expand into the engine market for the Chinese power generation and construction equipment industries.
An official from Doosan Infracore said, "By establishing this joint venture, we will be able to secure the world's largest consumer of our agricultural machinery engines while, in the long term, we will be able to enjoy the same effect as setting up a G2 engine plant in China." He went on to say, "The JV will serve as a springboard for the growth of our engine business and generate higher profits in emerging markets including China."
Doosan Infracore is committed to developing engines that meet the emissions standards of various countries around the world while seeking to expand the portfolio of its engine market to include forklifts, commercial vehicles, farm machinery and power generators, among others. In June 2017, Doosan Infracore signed a long-term engine supply contract with KION GROUP AG of Germany, the world's second largest forklift manufacturer. And, just one month later, the Company successfully entered the Vietnamese bus engine market by supplying its bus engines to four Vietnamese commercial vehicle manufacturers.
Lovol, China's biggest agricultural machinery manufacturer, based in Shandong Province in eastern China, produced a total of 120,000 farm machines in 2015 alone.