Deutz creates new "Green" segment

Nov. 21, 2021

Deutz AG, Cologne/Stockstadt, Germany, is creating a new reporting structure and introducing the “Classic” and “Green” segments. Effective Jan. 1, 2022, all activities relating to the development and manufacture of new drives beyond the diesel engine will be mapped in the “Green” segment. These include the electric motors, the subsidiary Torqeedo and the battery management specialist Futavis. With the new segment reporting, Deutz also is making the engines that run on hydrogen and topics related to fuel cells much more visible.

Deutz bundles its activities in the development, manufacture, sale and maintenance of diesel engines in the Classic segment.

“With the new segmentation of our business activities, we are creating more transparency, especially vis-à-vis the capital market, with regard to our work on climate-neutral mobility of the future in the off-highway sector,” said Dr. Frank Hiller, CEO, Deutz. “There is also a clear growth strategy that clearly describes our milestones and activities up to 2031.

“At the same time, the new direction is also a clear signal to the employees at Deutz that the company is tackling the transformation of the product portfolio with full conviction and consistency.”

The activities shown in “Green” currently account for around 60 million (US$67.9 million ), 4 percent of sales. This share is to be increased to more than 50 percent by 2031, both through organic growth and targeted acquisitions and takeovers of new technologies. The new segment is expected to break even in 2027.

Strategic investments, such as the planned investment in Blue World Technologies, a leading manufacturer of fuel cells, also will be managed in the “Green” segment in the future.

The investments in the “Green” growth strategy will be financed mainly by the classic business with diesel engines until 2026. Frank Hiller said: “Internal combustion engines will be in demand in our application areas for many years to come. We are world leaders in agricultural and construction machinery. Our customers are increasingly interested in long-term cooperation.”

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