Deutz AG has announced the release of its TCD 6.1 L6 and TCD 7.8 L6 Agripower engine models for use with 100% biodiesel. The German engine manufacturer said these engines meet Stage 3b emissions regulations and feature a 2000 bar injection system and SCR aftertreatment.

The announcement follows field testing conducted in collaboration with the Union for the Promotion of Oilseeds and Protein Plants to validate the suitability of biodiesel, Deutz said.

The company also said that only biodiesel conforming to the DIN EN 14214 specification should be used, recommending that its customers in Germany should assure themselves of the quality of the biodiesel by obtaining a certificate from the AGQM (Biodiesel Quality Assurance Working Group).

Donaldson Co. announced construction on two new manufacturing plants in Xuzhou, China, to serve the filtration needs of China’s diesel-powered equipment and industrial markets. Each of the new plants will be 140,000 sq. ft., one dedicated to manufacturing air filters while the other plant will specialize in liquid filters.

The two new plants, expected to open in 2014, represent Donaldson’s second manufacturing campus in China. Donaldson opened its first facility in China in Wuxi opened in 1997 and currently has four manufacturing plants.

“We are very pleased to add these two new plants to our existing manufacturing and distribution base in China and have appreciated the wonderful support of the local Xuzhou Economic & Technological Development Zone officials through the planning process,” said Eugene Wu, Donaldson’s president of Asia Pacific. “As the industrial and diesel-powered equipment markets continue to develop and expand in China, these new plants will allow us to both further increase our air filter manufacturing capacity and establish our first Chinese-based liquid filtration manufacturing capacity to meet our projected Chinese customer demand.”

As the 2012 edition of the Fluidtrans Compomac show closed its doors in Milan, the organizer Fiera Milano announced a cooperation with the Deutsche Messe for the launch of a new specialized show: TPA Italia.

The new TPA Italia show – dedicated to hydraulic and pneumatic power transmissions and automation - will maintain the Fluidtrans biannual schedule, but with a completely new format. The first edition will be held in May 2014 at the Milan-Rho show grounds.

This cooperation marks the first time Deutsche Messe has taken a Hannover Messe show to another European country.

“With MDA in Hannover and PTC ASIA in Shanghai we organize the two biggest and most important motion, drive and automation trade fairs in the world.” said Andreas Gruchow, member of the board of Deutsche Messe AG. “Now we will exploit our expertise and international contacts to create, together with our long-time partner Fiera Milano, one of the leading trade fairs in Southern Europe.”

TPA Italia will maintain the support of the two Italian trade associations Assofluid and Assiot.

South Korean manufacturer LS Mtron said it has signed a protocol of intentions with the government of Santa Catarina State, Brazil, to install a tractor plant in the city of Guaruva. The initial investment was estimated at $16 million, but the company said that it intends to increase that number. It is LS Mntron’s first facility in Latin America.

Jung Soo Yoo, LS Mtron president in Brazil, called the investment a strategic decision. “We want to be partners for a long time and to be together in greater initiatives,” said Yoo. The company will also manufacture other components in Brazil, Yoo said.

Founded in 2008, LS Mtron is part of LG Eletronics group and is active in more than 15 countries. The focus at the Brazilian plant will be the domestic market, but there are intentions to export from the facility as well, the company said. The plant will have a capacity of 5000 thousand units a year and could generate around 100 direct jobs. Globally, LS Mtron said it manufactures approximately 50,000 tractors a year.

There were a few interesting tidbits in China Yuchai International’s unaudited consolidated financial results for the first quarter.

China Yuchai is a leading automotive manufacturer and distributor of diesel engines in China through its main operating subsidiary, Guangxi Yuchai Machinery Company Ltd., GYMCL.

Overall, the company’s net revenue was RMB 3.7 billion (US$ 585.0 million) compared with RMB 4.2 billion in the first quarter of 2011. Gross profit was RMB 779.4 million (US$ 123.8 million), a 21.2% gross margin compared with RMB 944.1 million in the first quarter of 2011, a 22.3% gross margin;

The total number of diesel engines sold by GYMCL during the first quarter of 2012 was 131,697 units compared with 160,831 units in the first quarter of 2011, a decrease of 29,134 units or 18.1%. This was mainly due to weaker demand in the commercial vehicle market. The decline in net sales was RMB 550.4 million, or 13.0% or as compared to the same period in 2011.

Also notable was that as of March 31, 2012, net inventory increased to RMB 2.6 billion (US$ 407.7 million) from RMB 2.4 billion at the end of 2011 as the company said it built up its supply of raw materials in preparation for production in subsequent quarters.

Benny H Goh, president of China Yuchai, said, "The weak market conditions continued into the first quarter of 2012 and were exacerbated by higher fuel costs as well as sluggish demand from the OEMs despite a decrease in their inventory levels. The Chinese truck and diesel engine markets continue to stagnate as construction activity across China slowed down.

“While we are still encountering strong headwinds due to the continued softening in the commercial vehicle market, we are attempting to mitigate the impact through our diversification strategy of being in different industries and offering diesel engines of different sizes,” Goh said.

“The bright spot in the current market is the bus segment which has continued to show growth. Our development of new products such as our high horsepower marine and power generator engines and suite of natural gas engines will help us when the market recovers. "