"Scania has decided to concentrate on its commercial marine business, " said Lennart Hjelte, senior vice president of Scania and head of Scania Industrial & Marine Engines.

"But through the co-operation with Yanmar, we will also be able to take part in the pleasure boat market."

Geert Jan Mantel, managing director of Yanmar Marine International, said Yanmar believed the leisure market is growing.

"We wanted to be able to offer our customers a more complete range of engines, " he said. "The cooperation with Scania completes our power range above 500hp for the pleasure craft market and Scania is the perfect partner to supply high quality, clean, compact and powerful engines for which Yanmar has become famous."

Yanmar will now be able to supply the increased power that our customers have been asking for, he added.

The first deliveries of Scania engines to Yanmar will take place in the autumn of 2003 and the first vessels with a Yanmar/Scania engine will be seen at sea in 2004.

Scania Industrial & Marine Engines will produce a Scania basic engine, especially developed for Yanmar to meet their specific demands, and it will be completed and marketed by Yanmar using their own brand, said Scania.