Doosan Infracore teams up with Indonesia's BBI to produce engines

22, Aug. 2019

SEOUL, AJU - Doosan Infracore, a South Korean construction machinery manufacturer, teamed up with Indonesia's state-run engine production company BBI to produce engines for multiple use and make a joint foray into Southeast Asian markets.

Doosan Infracore said Wednesday it signed a contract with BBI for engine production in a ceremony in Surabaya, a port city on the Indonesian island of Java. The contract followed a strategic partnership forged by the two companies in August 2018 for a diesel engine project.

The two companies agreed to work together to develop engines after going through steps such as simple, partial and complete assembly for the next 13 years. BBI has set up a simple partial assembly production plant capable of producing up to 16,000 units per year and plans to increase its size to 25,000 units for ships, construction machinery, agricultural machinery and generators.

“The BBI plant will be a major hub in targeting emerging markets such as Southeast Asia,” Yoo Jun-ho, vice present and head of Doosan Infracore's engine business division, said, adding Doosan Infracore would actively respond to diverse engine demands by setting up a global production system tailored to an engine lineup by market.

In July, Doosan Infracore set up an engine training center and disclosed plans to boost engine sales in Vietnam to $30 million in 2023 and use the Southeast Asian country as a regional hub.