Deutz AG and Shandong Changlin Machinery Group Co., Ltd., a Chinese manufacturer of agricultural machinery and construction equipment, have agreed to establish a joint venture, Deutz (Shandong) Engine Co., Ltd., for the production of 2011 series engines beginning in early 2013. These engines are designed for use in agricultural machinery, construction equipment, and industrial applications. By producing these engines with capacities of less than 4.0 L, the German manufacturer is scaling up its operations in China, where the Deutz (Dalian) Engine Co., Ltd. joint venture has been manufacturing Deutz-branded 4.0- to 8.0-L engines since 2007. Deutz holds a 70% stake in the new JV, which will be based in Linyi in Shandong province, while Shandong Changlin Machinery owns 30%. The plant will be designed to achieve an annual capacity of around 65,000 engines over the medium term. This JV will be managed on a day-to-day basis by Deutz, which also has a JV with Weichai Power named Weifang Weichai-Deutz Diesel Engine Co., Ltd.