\n<\/p>\n
<\/p>\n
\n<\/ul>\n
COLOGNE\/STOCKSTADT,
\nGERMANY – EQS Newswire – 17 November 2021 – DEUTZ AG is
\ncreating a new reporting structure and introducing the segments ‘Classic’ and
\n‘Green’.<\/p>\n
With effect from January 1, 2022, all activities connected with the
\ndevelopment and production of new non-diesel drives will be assigned to the
\nGreen segment. This includes electric drives, the subsidiary Torqeedo, and the
\nbattery management specialist Futavis. Through the new reporting structure,
\nDEUTZ is giving much greater visibility to the development of hydrogen-powered
\nengines and fuel cells. Activities related to the development, production,
\nsales and service of diesel engines will be combined under the Classic segment.<\/p>\n
Dr. Frank Hiller, CEO of DEUTZ: “The new segmentation of our commercial
\noperations will, above all, provide the capital markets with a more transparent
\npicture of our work on off-highway technology for a carbon-neutral future. It
\nis backed by a growth strategy that very clearly sets out our milestones and
\nactivities in the period up to 2031. At the same time, the new strategy leaves
\nDEUTZ’s employees in no doubt that the Company is fully committed to the
\ntransformation of its product portfolio.”<\/p>\n
The activities in the Green segment currently generate around \u20ac60 million
\nper year, equivalent to around 4 percent of DEUTZ’s revenue. The intention is
\nto increase this proportion to more than 50 percent by 2031, both through
\norganic growth and through targeted acquisitions and takeovers focused on the
\nnew technologies. DEUTZ aims for the new segment to reach break-even in 2027.<\/p>\n
Strategic investments will also be included in the Green segment, for
\nexample the planned investment in Blue World Technologies, a leading
\nmanufacturer of fuel cells.<\/p>\n
Up to 2026, investment in the growth strategy for the Green segment will
\nmainly be funded by the traditional business with diesel engines. Frank Hiller:
\n“Internal combustion engines will be in demand in our application areas
\nfor many years yet. We are a global leader in agricultural machinery and
\nconstruction equipment, and more and more of our customers are showing interest
\nin long-term partnerships.”<\/p>\n
For example, DEUTZ recently announced new alliances with John Deere, SDF and
\nAGCO that will see DEUTZ either develop or manufacture entire engine series for
\nthese leading players in the world of agricultural machinery. “DEUTZ is
\ngetting greener, there is no doubt about that. The switch to new drives is on
\nits way in all customer groups. We want to be – and will be – at the forefront
\nof this transformation. Whether diesel, gas, synthetic fuels, electricity, or
\nhydrogen, we are reinventing the engine. Today, there are all kinds of
\ndifferent drive systems, all with the aim of movement. The era of fossil fuels
\nis coming to an end, but the need for mobility will remain.”<\/p>\n