Manufacturers of diesel engines for off-highway applications are making it known that they’re on the hunt for new business.
Diesel engine maker Deutz is stepping up efforts to win business from agricultural vehicle OEMs as part of a strategy to even out demand at its factories.
In its 2016 annual report, Deutz managers note that with ag equipment demand following a different economic cycle than the group’s other main segments — construction equipment and materials handling — expanding sales to farm machinery OEMs would help smooth manufacturing demand.
Last year, at €176.5 million ($190 million), agricultural applications accounted for 14% of group net sales, which increased just 1% to €1.26 billion ($1.36 billion). Materials handling accounted for 15% and construction equipment almost 28%. Automotive, stationary equipment, other applications and service operations accounted for the rest.
Despite a decline in retail sales of agricultural machinery in Europe, demand in the region for engines to power ag equipment increased 10.8% on a revenues basis last year and 7.7% in unit sales.
Having purchased large numbers of engines in 2014 ahead of emissions changes, OEM inventories are now running down and fresh stock is needed.
Last year, that helped push up total revenues from customers in EMEA (Europe, Africa, Middle East) by 3.3% while, in contrast, they fell 13% in North America.
At 17,173 units, Deutz sold more than 1,200 additional engines for agricultural applications last year than in 2015. More than 87% of those were of 8 liters capacity or less produced by the company’s Compact Engines unit to power tractors, wheeled loaders, telehandlers and diet feeders.
Construction equipment giant Doosan Infracore is making headway with OEM orders for compact off-highway vehicle engines as it aims to increase annual sales from the 37,000 units shipped in 2015 to 100,000 units in 2020.
Doosan Infracore’s engines business unit has started supplying Daedong, the South Korean maker of Kioti brand tractors with the high-spec 3.4-liter D34 4 cylinder engine in a deal expected to total 6,300 units over 5 years. In addition to the current contract, Daedong has reportedly said it will prioritize Doosan whenever it needs an electronic engine of 3 liters or more.
Doosan is already supplying fellow South Korean tractor manufacturer Tong Yang Moolsan (TYM) and anticipates a similar arrangement with Kukje Machinery, the Branson-brand tractor maker that TYM acquired last year.
Doosan’s Bobcat compact equipment product line was the first recipient of the new G2 engine family, which also encompasses a 2.4 liter off-highway unit. The engines are produced in a dedicated facility opened less than 5 years ago.
The D34 used in larger models of Bobcat skid steer and tracked loaders is EPA Tier 4 Final emissions compliant without using a diesel particulate filter (DPF). The D34 has recently been introduced to Bobcat’s latest generation telescopic loader line built in France — and also distributed as a Massey Ferguson product in selected markets — including the V519 VersaHandler, which Bobcat refers to as a telescopic tool carrier, recently launched in North America. With outputs of 75, 100 and 130 horsepower, the Doosan engine replaces Deutz engines of similar power.