FRANKFURT (AP) -- Truck and engine maker MAN SE said Tuesday it intends to merge its diesel and turbo production units in a bid to streamline operations, grab more market share and trim costs.
MAN's diesel unit builds large engines used in ships and land-based power plants, while the turbo unit constructs compressors, gas and steam turbines.
"This will allow the MAN Group to combine the engine and power plant expertise of the diesel engines business with the compressor and turbine technology of the turbomachinery business to form a strong power engineering unit for the long term," said MAN Chief Executive Hakan Samuelsson.
The Munich-based company said the combined unit will have revenue of some euro4 billion ($5.59 billion), employ 12,000 workers globally and be based in Augsburg.
Shares of MAN were up 2 percent to euro43.72 ($61.10) in Frankfurt trading.