Diesel-engine makers team up

Deutz, a German machinery and diesel-engine maker, says it has formed a joint venture with Weifang Diesel Engine Works to produce diesel engines in the mainland. Each company will hold 50 per cent in the joint venture, which will make Deutz's high-speed, water-cooled model 226 engines. Deutz did not say how much it would invest. Initially, the engines will be earmarked for the mainland market and are to be installed in generators and other heavy equipment. Production will begin this year and reach full output capacity of 25,000 engines per year by 2002.