Cummins and LiuGong agree Chinese joint venture

196 Cummins and 5389 Guangxi 269 LiuGong Machinery have established a joint-venture partnership to manufacture mid-range engines at a new facility. The plant will be built in Liuzhou City, Guangxi Province, in southern China and the assembly of engines from kits will commence in 20120, while full production of engines will start during 2013.

The joint-venture plans to make some 50,000 units/year, although the plant will have additional capacity should demand rise as anticipated. The Guangxi Cummins Industrial Power joint-venture will build mid-range Tier 2/Stage II and Tier 3/Stage IIIA emission compliant engines.

The engines will be adapted for use in construction equipment usage to meet the demand of both LiuGong and other equipment manufacturers in China. The output from this new facility will complement existing manufacturing capabilities that Cummins has in China, which have focused primarily on the automotive market. Developing premium mid-range engines for China will help boost the country’s construction machinery manufacturing industry, which has a strong and growing demand for high performance, reliable engine power.