Swedish truckmaker Scania and South Korean equipment manufacturer Doosan Infracore have signed a letter of intent (LOI) agreed to extend their current engine supply agreement.
The Swedish truck maker said that, from 2014, it will supply engines for Doosan's articulated dump trucks (ADTs) and large wheeled loaders, as well as other products within the Doosan range.
Scania senior vice president and head of engines Robert Sobocki said in the long term, the company is estimating delivery of well over 3,000 engines annually to Doosan Infracore.
"Our engines fulfill our OEMs' expectations and their experience tells us that not only do we have powerful systems to offer, the fuel efficiency has also improved," Sobocki said.
The supply agreement will include China, where Doosan sells over 20000 construction machines annually.
Andrew Choi, sourcing director at Doosan Infracore said the company had tested Scania's engines in its products and they meet its expectations for reliability, performance and fuel efficiency.
The company said that its industrial engines will manage stage IV and tier 4 final with EGR and SCR technology but without a particulate filter and the newly developed engine platform is the same for all emission levels ranging from stage II to stage IV.