South Korean machinery manufacturer, Doosan Infracore has awarded agricultural manufacturer Daedong Industrial a contract worth $119m for the long-term supply of its smaller diesel engines.
Under the terms of the deal, Daedong Industrial will supply 20,000 diesel engines annually to Doosan up until 2020 in an original development manufacturing (ODM) arrangement aimed at reducing the beleaguered equipment giant’s production overheads.
Daedong Industrial will supply eight of the OEM’s smaller diesel engines for generators and industrial applications, including the 3C100, 3A139, 3A165, 3B183, 4A220, 4A220T, 4B243 and 4B243T.
By improving the price competitiveness of Doosan’s smaller diesel engine products, the deal is expected to strengthen Doosan’s competitiveness in the smaller segments and in overseas markets.
Doosan Infracore will continue to manufacture its larger diesel engines, from 1.8l to 2.7l in capacity.
