The venture is entering the market following months of turmoil in oil prices. A glut in oil supply was a factor in the market price plunging from $110 a barrel last June.Brent crude oil is currently priced around $66 a barrel.
A large part of this glut has been the increase in oil produced by the U.S. fracking industry. Hydraulic fracturing, or fracking, is the process by which oil and gas companies use a mixture of water, sand and chemicals to release and extract fuel trapped within shale formations. However, the process is expensive and criticised by environmental groups.
Read MoreA start-up that's solved fracking's dirty problem
Keith Cochrane, Chief Executive of the Weir Group, believes that the equipment produced by the venture will make fracking operations more efficient and potentially more profitable. In a statement announcing the deal, Cochrane said: "This joint venture again shows our ongoing commitment to innovation which reduces our customers' total cost of ownership and improves productivity.
"By combining the frac pump, transmission and engine into one power system and supporting it using MTU and Weir's service networks, we will deliver significant benefits for our oil and gas customers."