RCS - Deutz AG - DEUTZ creates new Green segment
17/11/2021 10:50
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RNS Number : 6714S Deutz AG 17 November 2021
DEUTZ AG: DEUTZ creates new Green segment
DGAP-News: DEUTZ AG / Key word(s): Miscellaneous/Miscellaneous
17.11.2021 / 10:00
The issuer is solely responsible for the content of this announcement.
· New growth strategy drives transformation to sustainable mobility
· CEO Dr. Frank Hiller: "We are reinventing the engine"
Cologne/Stockstadt, November 17, 2021 - DEUTZ AG is creating a new reporting
structure and introducing the segments 'Classic' and 'Green'. With effect from
January 1, 2022, all activities connected with the development and production
of new non-diesel drives will be assigned to the Green segment. This includes
electric drives, the subsidiary Torqeedo, and the battery management
specialist Futavis. Through the new reporting structure, DEUTZ is giving much
greater visibility to the development of hydrogen-powered engines and fuel
cells. Activities related to the development, production, sales and service of
diesel engines will be combined under the Classic segment.
Dr. Frank Hiller, CEO of DEUTZ: "The new segmentation of our commercial
operations will, above all, provide the capital markets with a more
transparent picture of our work on off-highway technology for a carbon-neutral
future. It is backed by a growth strategy that very clearly sets out our
milestones and activities in the period up to 2031. At the same time, the new
strategy leaves DEUTZ's employees in no doubt that the Company is fully
committed to the transformation of its product portfolio."
The activities in the Green segment currently generate around €60 million
per year, equivalent to around 4 percent of DEUTZ's revenue. The intention is
to increase this proportion to more than 50 percent by 2031, both through
organic growth and through targeted acquisitions and takeovers focused on the
new technologies. DEUTZ aims for the new segment to reach break-even in 2027.
Strategic investments will also be included in the Green segment, for example
the planned investment in Blue World Technologies, a leading manufacturer of
fuel cells.
Up to 2026, investment in the growth strategy for the Green segment will
mainly be funded by the traditional business with diesel engines. Frank
Hiller: "Internal combustion engines will be in demand in our application
areas for many years yet. We are a global leader in agricultural machinery and
construction equipment, and more and more of our customers are showing
interest in long-term partnerships."
For example, DEUTZ recently announced new alliances with John Deere, SDF and
AGCO that will see DEUTZ either develop or manufacture entire engine series
for these leading players in the world of agricultural machinery. "DEUTZ is
getting greener, there is no doubt about that. The switch to new drives is on
its way in all customer groups. We want to be - and will be - at the forefront
of this transformation. Whether diesel, gas, synthetic fuels, electricity, or
hydrogen, we are reinventing the engine. Today, there are all kinds of
different drive systems, all with the aim of movement. The era of fossil fuels
is coming to an end, but the need for mobility will remain."
Contact:
Christian Ludwig
Senior Vice President Communications & Investor Relations
Tel. +49 (0) 221 822-3600
E-Mail: christian.ludwig@deutz.com
17.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service
of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: DEUTZ AG
Ottostraße 1
51149 Köln (Porz-Eil)
Germany
Phone: +49 (0)221 822 0
Fax: +49 (0)221 822 3525
E-mail: ir@deutz.com
Internet: www.deutz.com
ISIN: DE0006305006
WKN: 630500
Indices: SDAX
Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate
Exchange
EQS News ID: 1249670
End of News DGAP News Service
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