Doosan Infracore (SEO:042670) Sets Up JV with Xuzhou Construction Machinery

Seoul, April 19, 2010 AEST (ABN Newswire) - South Korea's Doosan Infracore Co. (SEO:042670), a maker of heavy machinery and diesel engines, has set up a 50:50 joint venture with China's Xuzhou Construction Machinery Group to produce diesel engines in China.

The two companies September last year agreed to invest a total of US$100 million in 50 to 50 stakes to Xuzhou Xugong Doosan Engine over the next four years. Doosan said the partnership with Xuzhou Construction Machinery Group is the optimal strategy for Doosan to enter into the Chinese diesel engine market which is the world's largest due to policies restricting foreign companies from setting up production bases on its own.

The new plant in Xuzhou, China, will go into operation in July 2011 and reach a production capacity of 100,000 engines per year in 2018. Once Xuzhou Doosan Engine's plant reaches full capacity, Doosan Infracore will have a combined annual production capacity of 156,000 engines, making it one of the world's 10 largest producers of diesel engines, the company said.

Xuzhou Construction Machinery Group is China's largest producer of construction machinery with 22 subsidiaries operating in related fields.

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Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net