South Korea’s agricultural machinery company Daedong Industrial Co. announced on Monday that it will supply 20,000 diesel engines annually up to 2020 to the nation’s top machinery manufacturer Doosan Infracore Co. in a deal worth 142.1 billion won ($119 million) in original development manufacturing (ODM) arrangement to help both manufactures save production cost.
Daedong Industrial will supply eight kinds of diesel engines for power generators and for industrial use to Doosan Infracore. The diesel engines are 3C100, 3A139, 3A165, 3B183, 4A220, 4A220T, 4B243 and 4B243T. Doosan Infracore currently manufacturing 1.8 to 2.7 liter diesel engines will get supplies of smaller-sized diesel engines from Daedong Industrial to strengthen competitiveness in small engine products and sell them in overseas markets.
The long-term arrangement will help to improve price competitiveness of their jointly produced diesel engine products.
By Ahn Gab-seong
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]