STX in US$58m diesel engine supply deal
By Will Pulson - 20th April 2025
STX Engine and Penske sign diesel engine supply deal
Australia / South Korea - Diesel engine manufacturer STX Engine Company Ltd, headquartered in Changwon on South Korea’s southern coast, announced in early March that it has signed a KRW84bn (USD58m) contract to supply diesel engines to Penske Australia Pty Ltd, according to local reports. The engines, understood to be eight-cylinder 1,000 hp units, will be used in a range of Redback infantry fighting vehicles (IFV) to be produced for the Australian army by South Korean defence contractor Hanwha Company Ltd.
As part of the agreement, STX Engine will supply diesel engines to Penske in batches over the next two years, with the company also agreeing to help establish a local assembly operation following a technology transfer agreement. STX Engine said the deal is an endorsement of the company’s expertise in diesel engine technologies for heavy vehicles.
