Joonho Yoo, head of Doosan Infracore’s Engine BG (center), Shen Yang, chairman of ARBOS Group (left), and Andrea Bedosti, CEO of ARBOS (right) posing for a commemorative photo at the headquarters of ARBOS in Carpi, Italy.

On 4 September 2018, Doosan Infracore announced that it had signed a letter of intent (LOI) with ARBOS, an Italian tractor manufacturer, for the development and supply of diesel engines.

Doosan Infracore plans to develop a range of 1.8-3.4 liter G2 engines for agricultural machinery that will meet the Stage-V* emission standard of Europe, and will supply some 27,000 engines to ARBOS over a period of six years starting in 2020.
* Stage-V: The emission standard that the European Union (EU) will enforce in 2019 to limit particulate matter (PM) emissions.

Although the company is already selling environmentally-friendly high-efficiency G2 engines in the European market for construction machinery and forklifts, with the execution of this LOI Doosan Infracore has secured an opportunity to expand its presence in the entire European engine market with a full lineup of products designed for both industrial and agricultural applications.

Launched in 1896 as an agricultural machinery manufacturer, ARBOS is the leader in the European market for compact tractors used mainly in orchards and vineyards. In 2017, ARBOS sold 2,600 tractors in Europe, America, and Oceania.

In partnership with Doosan Infracore, ARBOS plans to increase its annual tractor sales to more than 6,000 per year by raising the value of its products, expanding into the medium-sized tractor market, and making inroads into the Chinese market among other objectives.

“ARBOS has chosen Doosan Infracore as its engine supplier over numerous European engine manufacturers, while we have succeeded in securing an opportunity to make inroads into the European agricultural engine market, which is renowned for its high barriers to entry,” said Joonho Yoo, vice-president and head of Doosan Infracore’s Engine BG. “Doosan Infracore is now in a strong position to enhance its prestige in the engine market by building a close strategic partnership with ARBOS, a top-notch company with a world-class brand identity, following its partnerships with Bobcat, the leader in the compact construction equipment market in North America and Europe, and KION, a German forklift supplier with the second highest market share in the world."

Doosan Infracore has signed a contract to supply environmentally-friendly high-efficiency G2 engines (left) to ARBOS, an Italian tractor manufacturer, starting in 2020.