Ishikawajima-Harima Heavy Industries Co. said Wednesday it has set up a joint venture with DaimlerChrysler AG in Germany to develop and manufacture turbo chargers for automobiles.
The joint company will seek to meet increasing demand for turbo chargers used in diesel engine cars, a spokesman for the heavy machinery maker said.
Demand is strong in Europe for diesel engines, which are seen to be more environmentally friendly than gasoline engines because they discharge less carbon dioxide.
Development of the turbo chargers will be undertaken at the new company's headquarters in Germany, while a former IHI subsidiary in Italy will manufacture them.