MTU Detroit diesel formed … Bucyrus to expand … Bosch Rexroth, Cat, Manitowoc all expand in China … New Horton plant … EMD sold

Diesel Progress North American Edition, Feb, 2005

Germany's MTU Friedrichsafen and Detroit Diesel Corp. have announced the formation of a new division for off-highway engine activities, to be called MTU Detroit Diesel. The group will continue to be headquartered in Detroit, Mich., and will be a separate division of Detroit Diesel Corp. and will be a part of DaimlerChrysler Off-Highway.

MTU Detroit Diesel will have responsibility for the application engineering, manufacturing, sale and service for off-highway engine products in marine, construction, industrial, power generation, petroleum and defense markets in the United States, Canada and Mexico. MTU Detroit Diesel will continue to build the series 4000, series 2000 and the off-highway series 60 at the Redford, Mich., engine manufacturing facility.

Bucyrus International Inc. said it plans to expand its South Milwaukee, Wis., operations. The company said the expansion will create about 100 jobs in 2005 and 2006. The mining equipment manufacturer had been considering a new facility outside of its South Milwaukee headquarters.

Bosch Rexroth AG said it will invest $110 million over the next three years to expand its production capacities in China, beginning with the construction of a new factory in Beijing in 2005. The new 914,000 sq.ft. Beijing facility will manufacture axial piston products for the Asian markets. The company also said it is expanding a hydraulic cylinder plant in Wujin.

Caterpillar said it will provide a range of Euro 4 compliant engines with ACERT Technology for the on-highway truck and bus markets by September 2006. Specifically, the engines include the C7, C9, C13 and C15 models currently in development. Models and ratings expected to be available for Euro 4 range from 190 hp to 625 hp. Performance, installation and application data will be available in fourth quarter 2005, Cat said. OEM fit-up engines are expected to be available for the European market during the third quarter of 2005. Expanded ratings for Euro 3 engines will also be available in 2005.

Horton Inc. has announced plans to build a new manufacturing facility in North America to produce the company's viscous product line. Production is expected to begin in late 2005 or early 2006. The location of the facility will be announced this spring.

Bridgestone announced it will build a plant in Zarow, Poland, to produce rubber tracks for earthmoving equipment. Plans call for the plant to begin operation in July 2006, and for its production capacity to reach about 26,000 tracks a year in 2007.

General Motors Corp., Greenbriar Equity Group LLC and Berkshire Partners LLC have announced a definitive agreement in which GM will sell its Electro-Motive Division (EMD) to an investor group led by Greenbriar and Berkshire Partners. Terms of the transaction, which is expected to close in the first quarter of this year, were not disclosed.

Caterpillar Inc. said the city of Qingdao in Shandong Province will be the location for an "Innovation Center" for product and process development in China. The center will be managed and wholly owned by Caterpillar. Cat said this commitment in China will provide a focal point for product development and will accelerate the introduction of its technology into its design and production processes in China.

The Manitowoc Co. Inc. said that its Crane Group will begin building a new manufacturing plant in Zhangjiagang, China. The new plant will replace the company's existing plant, which currently manufactures a full range of Potain tower cranes in capacities from 40 to 485 metric tons. Scheduled for completion in early 2006, the new plant will be more than twice the size of the existing 1.29 million sq.ft. plant.

Engineered Support Systems Inc. said it has received a $10.6 million, firm-fixed price contract to supply 452 repackaged truck diesel engines to the U.S. Army Tank Automotive and Armaments Command, Warren, Mich. This requirement will be performed by the company's Fermont subsidiary, Bridgeport, Conn. The engines will be used to support the Army's Family of Medium Tactical Vehicles (FMTV).

The contract involves purchasing vehicle engines, adding controls, hydraulic lines and other dressing. The engines will then be preserved and placed in individual shipping containers for their later use by the Army. Fermont will complete this contract by January 2006.