Engine manufacturer Deutz AG and Liebherr Machines Bulle S.A., developer and producer of diesel and gas engines, recently agreed on the key aspects of a strategic alliance for worldwide distribution of diesel engines. With this arrangement, Liebherr intends to grant Deutz worldwide sales and service rights for its 200 to 700 kW (268 to 938 hp) diesel engines for a variety of applications, according to a release from Deutz.

The engines are being developed for the EU Stage V, U.S. Tier 4, China IV, and EU Stage IIIA emissions standards, meeting future statutory requirements for exhaust emissions. The engines, manufactured by Liebherr, will be available to Deutz for series delivery from 2019.

A fit with its product portfolio, Deutz says it plans to sell the diesel engines under its own brand to its customers, including through its network of dealers. As part of the agreement, Deutz will receive exclusive rights for the production of a Liebherr 9-L engine in China, the company stated in a release. An expansion of the use of Deutz engines in Liebherr's machines up to 150 kW (201 hp) also is planned.

The agreement between the two companies on the key points of their strategic alliance strengthens their long-standing partnership. Deutz and Liebherr intend to draw up and sign contracts outlining the details of this strategic alliance soon, according to the late-October release from Deutz.