Varity Corp. has entered into a long-term partnership with a South Korean business conglomerate to build and sell automotive and industrial engines, the Buffalo-based company said.
Varity's Perkins diesel engine group made the agreement with the Halla Business Group to build Eagle auto engines and 1000 and 2000 Series industrial engines at a facility in Soi, South Korea, Varity said.
The 10-year technology transfer agreement will result in the manufacture of 35,000 to 40,000 engines per year by the year 2000, it said. Production is scheduled to begin late next year.
Perkins said it plans to expand its presence in South Korea and Southeast Asia through its partnership with Halla. The Perkins group established several separate joint ventures to build engines with Japanese companies and a Chinese company last year.