On 11 September 2024, the relevant authorities in Beijing granted a business licence for a joint venture between the German company Deutz China Verwaltungs GmbH and the Chinese company Zhongguancun Summit Enviro-Protection Co., Ltd, the establishment of which had previously been approved by the European Commission and the Turkish competition authority.
Both companies each hold a 50 per cent stake in the new joint venture, which will in future operate under the name DEUTZ Zhongguancun Hydrogen Technology Co. Taylor Wessing's international team led by Christoph Hezel, Stephan Manuel Nagel and Johnny Zhao (together with Stella Yang, Mareen Coenen, Marieka Müller-Steinmann, and many others) advised DEUTZ China on all corporate, contractual and merger control issues related to the establishment of the company.
DEUTZ China is a subsidiary of DEUTZ AG. The group, headquartered in Cologne, is one of the world's leading manufacturers of innovative drive systems for the off-highway sector. The core competences of the listed company are the development and production of diesel, gas, hydrogen and electric drive systems; in particular for construction and agricultural machinery, material handling applications such as forklifts or lifting platforms, commercial and rail vehicles for private and commercial use. With around 5,000 employees and almost 900 sales and service partners in more than 130 countries worldwide, DEUTZ generated revenue of more than €2 billion in the 2023 financial year.
Zhongguancun Summit Enviro-Protection Co., Ltd is a service provider in the field of environmental protection. Its range of services includes environmental monitoring, technology research and development, waste disposal and resource utilisation, ecological restoration, and environmental management.
The joint venture will promote the commercialisation of the DEUTZ hydrogen engine in China and initially market generator sets powered by DEUTZ hydrogen engines in China. The joint venture will initially source the hydrogen engines directly from DEUTZ. The joint venture will also offer repair and maintenance services for the generator sets. Depending on the market situation, the joint venture will also explore the possibility of other hydrogen-based technical applications.
Taylor Wessing is an international commercial law firm with over 1,200 lawyers in 17 locations, providing full-service legal advice of the highest quality to clients worldwide.
Legal advisors to DEUTZ AG
Taylor Wessing China: Christoph Hezel (Partner), Johnny Zhao (Partner), Stella Yang (Counsel), all Corporate / M&A, all Beijing
Taylor Wessing Germany: Stephan Manuel Nagel, LL.M. (Partner), Mareen Coenen, LL.B. (Associate) and Marieka Müller-Steinmann (Associate), all Competition law, all Düsseldorf
