Guangxi Cummins Engine Company Celebrates Official Start of Operations with Completion of First Engine

Thu Mar 14, 2013 4:00pm EDT

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130314:nBw146235a

LIUZHOU CITY, Guangxi Province, China--(Business Wire)--
Today, the first Cummins L9.3 engine rolled off the production line at Guangxi
Cummins Engine Company Limited (Guangxi Cummins), the 50:50 joint venture
between Cummins Inc. (NYSE: CMI) and LiuGong Machinery (Shenzhen: 000528),
marking the official start of operations in Liuzhou, southern China. 

The 9.3-liter engine is designed and built in China specifically for
construction equipment to meet the demand of both LiuGong and other equipment
manufacturers. The engine is available in multiple versions to meet various
off-road emissions standards. 

"This new engine will complement Cummins existing product and manufacturing
capabilities in China and focus specifically on the mainstream domestic
construction markets," said Dave Crompton, Vice President, Engine Business,
Cummins Inc. "It signifies an important move for Cummins to invest in meeting
the unique demands of the local market by optimizing for performance, fuel
economy and cost. I am confident that this customer-focused approach is laying a
solid foundation for the continuous success of the new product platform and that
of the new joint venture." 

Evolved from the world class Cummins L8.9 engine platform, the L9.3 engine is
rated 162 kW (220 hp) and offers superior low-end torque for wheel-loader
applications with 5T-bucket load. With specially designed and patented power
curve for wheel loaders and optimized combustion for wheel loader duty cycles,
the L9.3 engine is uniquely positioned to meet customer requirements for strong
power delivery, fast response and operational efficiency. The optimized
components and engine features are engineered to deliver high reliability,
improved fuel efficiency and performance for off-highway customers. 

"Guangxi Cummins enjoys a natural advantage in leveraging Cummins technological
leadership and LiuGong`s rich application experience in the construction
machinery market," said Steve Chapman, Group Vice President for China and
Russia, Cummins Inc. "This unique value proposition is of vital importance while
we explore more market opportunities with an expanded product portfolio. As
construction machinery OEMs in China play an increasingly important role in the
global market, we expect that the development and optimization of Cummins
engines for their equipment will add value to the industry." 

Guangxi Cummins is the first Cummins manufacturing facility in China dedicated
to providing power for the construction machinery market. It is also one of the
largest production facilities for off-highway diesel engines in China. The total
investment on the company exceeds RMB 1 billion (US $160 million). Covering an
area of 200,000 square meters, the initial production capacity is expected to
reach 50,000 units per year, with the ability to expand the volume higher in the
future when market demands increase. 

"The establishment of Guangxi Cummins further expands the decade-long strategic
cooperation between Cummins and LiuGong. We are delighted to be able to
complement our vigor and strength with Cummins` expertise and leading
technology," said Zeng Guang`an, President of LiuGong. "The joint venture will
be vital in building the unique competitive advantage of LiuGong construction
machinery in the China market, as well as in our efforts to penetrate into
international markets." 

About LiuGong

For more than 50 years, LiuGong Machinery Corporation has been a leader in
China`s construction equipment manufacturing industry. From building the
country`s first modern wheel loader, LiuGong has evolved to become one of the
fastest growing, global, full-line CE companies in the world. LiuGong delivers
opportunity to its employees, quality products and services to its customers,
financial success to its investors, and community support in the regions it
serves. 

About Cummins

Cummins Inc., a global power leader, is a corporation of complementary business
units that design, manufacture, distribute and service diesel and natural gas
engines and related technologies, including fuel systems, controls, air
handling, filtration, emission solutions and electrical power generation
systems. Headquartered in Columbus, Indiana, (USA) Cummins currently employs
approximately 46,000 people worldwide and serves customers in approximately 190
countries and territories through a network of approximately 600 company-owned
and independent distributor locations and approximately 6,500 dealer locations.
Cummins earned $1.65 billion on sales of $17.3 billion in 2012. Press releases
can be found on the Web at www.cummins.com or www.cumminsengines.com. Follow
Cummins on Twitter at http://twitter.com/cumminsengines and on YouTube at
http://youtube.com/cumminsengines. 

About Cummins China

China has become one of Cummins fastest-growing geographical markets. In 2012,
Cummins` consolidated and unconsolidated sales in China exceeded $3 billion. As
the largest foreign investor in China's diesel engine sector, Cummins operates
28 facilities in China, including 17 manufacturing sites that produce engines,
turbochargers, filters, emission solutions, fuel systems, alternators and
electrical power generation systems. In the aftermarket support area, Cummins
has 12 regional service centers, 34 Customer Support Platforms and over 2000
authorized dealers of Cummins wholly-owned and JV entities across the region.

Cummins Inc.
Jon Mills, Director - External Communications, 317-658-4540
Email: jon.mills@cummins.com

Copyright Business Wire 2013

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.