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The company decided to invest an additional €75 million in capacity expansion in the production of MTU engines, L’Orange high performance injection systems, as well as the extension of the MTU Onsite Energy power generation systems during the current and the coming year. Particularly the in-house production of essential components for high performance diesel engines will be expanded and given a more international outlook with an investment volume of around €50 million.

The Tognum Group is therefore currently looking for a new site in the US dollar region which would initially supply the existing assembly plant in Detroit, MI, with cylinder heads and components for the production of the successful Series 4000 engines. Furthermore, at the existing site near Istanbul, Turkey, the first step will be to set up a manufacturing facility for cylinder liners designed for the Series 4000.

Simultaneously with the installation of new international manufacturing sites in the U.S. and Turkey, an amount of more than€10 million will be invested at the existing production site in Friedrichshafen in order to boost quantities in conrod and crankcase production facilities.

Volker Heuer, CEO of Tognum AG explains, “With these major investment efforts for the future, we will further increase the flexibility in our engine production and will be able to further grow revenues from 2010 onwards. The new US site, in combination with a purchasing offensive in the dollar region, is designed to have sustained calming effects on the currency volatility currently affecting Tognum.

“Moreover, in the long term, we are enhancing our competitiveness, and the production on site will improve our chances to be awarded major orders with public authorities,” comments Heuer on the confirmation of the Executive Board’s plans by the Supervisory Board.