Doosan Infracore announced on October 4 that it has signed a letter of intent (LOI) on the development and supply of diesel engines with the Italian tractor manufacturer Arbos.
Doosan Infracore plans to supply 27,000 units to Arbos for six years from 2020 after developing 1.8 to 3.4-liter G2 engines for agricultural machinery, which meet European Stage-V emissions regulations. Stage-V is the emission regulation that the European Union (EU) is expected to enter into force in 2019 to limit the emission of particulate matters from diesel engines.
Doosan Infracore has been selling the G2 engine, which is an eco-friendly high-efficiency product used in construction equipment and forklifts in Europe. Through this LOI agreement, the company will secure a product line that can capture the entire European engine market, not only for industrial uses but also for agricultural.
Arbos started as an agricultural machinery manufacturer in 1896 and is a European market leader in the field of small tractors that are mainly used in orchards, including vineyards. Last year, the company sold more than 2,600 tractors in the European, American and Oceanian markets. Based on its cooperation with Doosan Infracore, Arbos plans to expand its business scope to the medium-sized tractor market by raising the merchantability of its original products and enter the Chinese market to expand its sales volume to more than 6,000 units per year.
Yoo Joon-ho, head and vice president of Doosan Infracore Engine Business, said, "We have passed through high entry barriers of the local agricultural machinery market by overtaking advanced European engine makers. By making a strategic partnership with a leading company with global brand power, followed by the partnerships with Bobcat and Germany's Kion, we will be able to strengthen our position in the engine market."