Steyr Motors $4X0 (+3.71%) ($MUX (+1.74%)) announced the establishment of a joint venture with Shangyan Power Technology Jiangsu, securing major sales for at least five years.
Shangyan Power is one of the leading Asian companies in the development and production of a wide range of diesel engines.
The joint venture is not only a strategic milestone in the internationalization strategy, which opens up new growth opportunities in the ASEAN region and on a global level, but also secures Steyr Motors a contractually guaranteed minimum contribution of EUR 65 million in sales and EUR 13 million in EBIT within five years from 2026.
This underlines the commitment of both partners to ensure sustainable competitiveness and global growth. The major advantage for Steyr Motors, apart from the positive effect on sales and earnings, is that no additional capital for investments or working capital will be required for the expansion of capacities via the joint venture.
The new product line complements the existing core products of Steyr Motors without overlapping with current products and thus opens up new customer segments for the company. In the ASEAN region alone, Steyr Motors is opening up an additional addressable market potential of an estimated USD 13 to 20 billion.
"This partnership is an important step in our global strategy," says Julian Cassutti, CEO of Steyr Motors AG. "It strengthens our ability to provide locally manufactured, high-quality drive solutions, while expanding our product portfolio in a targeted manner. Together we are opening up new markets, improving our responsiveness and creating a solid foundation for long-term success."
The joint venture will also support the Austrians in expanding their global sales and service network, which will enable them to serve a broader customer base more efficiently and quickly. The operational launch is planned for the end of 2025.
