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Dec. 13, 2011 – Cummins Inc.
and Guangxi LiuGong Machinery Co. Ltd. recently announced a joint-venture
partnership to manufacture mid-range engines at a new facility to be built in
Liuzhou City, Guangxi Province, in southern China. The operation, known as
Guangxi Cummins Industrial Power Co., Ltd., will start engine production in
2013. Volume is expected to reach 50,000 units, with the capability to expand.
The joint-venture engines will be
based on Cummins engine family, meeting Tier 2 and Tier 3 emissions, and will
be adapted for construction equipment usage to meet the demand of LiuGong and
other equipment manufacturers in China.
This new investment in engine
production will complement Cummins’ existing manufacturing capabilities in
China that have focused primarily on the automotive market.
“The
joint-venture announced with LiuGong will create the foundation for both
partners to significantly expand in the construction equipment market in China,
the largest in the world, and where robust demand will continue to drive growth
in the years ahead,” said Tom Linebarger, president and chief operating
officer, Cummins Inc.
“Initial
operations will begin as early as 2012 with engine kit assembly, providing a
useful lead-in to full production engines in 2013,” added Zeng Guang’an,
vice-chairman and president, Guangxi LiuGong Machinery Co., Ltd.
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