Doosan Infracore intends to jumpstart its future as a global diesel engine manufacturer with the commencement of work to build a diesel engine factory in China that is to have an annual production capacity of 100,000 units.

On April 18, the company reported that it held the ground-breaking ceremony for the Xuzhou XCMG Doosan Engine Xuzhou factory in the Economic Development Zone, Xuzhou City, Jiangsu Province, with 500-plus people in attendance, including Xuzhou Party Secretary Cao Xinping, Xuzhou Mayor Jing-Hua Zhang and Doosan Infracore President Han Gi-seon.

A 50-50 joint venture between Doosan Infracore and the XCMG Group of China engaged in the production and sales of diesel engines for construction machinery, heavy duty trucks and power generators, Xuzhou Xuzhou XCMG Doosan Engine was established in September 2009 at a cost of around 680 million yuan (=125 billion won).

The 198,000 ㎡-sized factory will start manufacturing 6-liter/8-liter diesel engines for construction machinery from July 2011 and for other vehicles from 2013. By 2018, it will have an annual production capacity of 100,000 units. It is expected that by then the company will have joined the ranks of the world’s top 10 diesel engine factories, with a combined production capacity of 156,000 units a year, including those produced at its Incheon Factory.

Commenting on the event, Doosan Infracore President Han Gi-seon said, “The factory in China will provide the company with another production foothold in China, with a sufficient cost competitiveness. It will also go a long way in the creation of synergies with the company’s existing business sectors. From now on, the company will pour all possible efforts into the goal of joining the ranks of the world’s top 10 diesel engine factories.”

Having 22 subsidiaries, the XCMG is the largest business in China to specialize in construction equipment, annually producing about 30,000 cranes, wheel-loaders, rollers and various types of road construction equipment.