Doosan Engine is set to produce turbochargers, a core component of diesel engines, on its own.

The company announced on September 15 that Sunghee Lee, the president & CEO of Doosan Engine, and Danie Arnet, the CEO of ABB Turbo Systems, had recently signed a technology alliance in Hamburg, Germany.

Under the technology alliance, Doosan Engine, having hitherto imported all its turbochargers, is now set to produce them, and is expected to reap an import substitution effect worth US$60 million a year.

The term of the alliance is 15 years, and Doosan Engine will begin producing turbochargers in July 2011.

ABB Turbo Systems, based in Baden, Switzerland, is the world’s top turbocharger producer, and currently controls a 45 percent share of the world market. The company entered the turbocharger business back in 1905.