Perkins to Acquire IAT’s Ownership Share of 400 Series Joint Venture
After a 23-year relationship between IHI Agri-Tech Corp. and Perkins Engines Co. Ltd., a wholly owned subsidiary of Caterpillar, Perkins and its affiliates have agreed to purchase IAT’s remaining share of the joint venture.
The joint venture has delivered a powerful range of engines in the 0.5- to 2.2-litre space. Manufactured in the United Kingdom, United States, China and Japan, there are currently more than 1 million Perkins 400 Series engines at work around the world, powering a wide range of off-highway equipment.
The acquisition of IAT’s remaining share of the joint venture – the engines business of IAT – will include the transfer of some machining operations owned by IAT’s subsidiary based in Jiangsu Province, China, and intellectual property for the 0.5- to 2.2-litre engine range.
This initiative will streamline the business, improve responsiveness to changing customer needs, and enable innovation in commercial as well as technical offerings. Perkins will be working with customers of IAT’s engines business to provide continuity of products and services.
“We see growth potential in compact engines to power small equipment such as mini-excavators, generators, skid-steer loaders and access platforms,” said Steve Ferguson, Perkins president. “Perkins is well positioned to be the professional partner to the world’s best-known industrial, machinery and electric power brands. This deal confirms our commitment to the sector and adds to our already significant investment in a full range of Perkins products to meet EU Stage V emissions standards.
“Small engines are an integral offering in Perkins’ engine portfolio and we will continue to maximize customer value by offering cost-competitive solutions. Perkins will manage through the transition period and will build on the foundation of the joint venture as it continues to develop the next generation of 0.5 to 2.2 liter diesel engines to meet current and future customers’ needs.”
