News
Hyundai and Cummins join forces for new engine line

October
5, 2012, Columbus, IN – Hyundai Heavy Industries and Cummins have announced a
50/50 joint venture partnership to manufacture MidRange engines in Korea
extending from 150 to 300 horsepower output for application in a wide range of
Hyundai construction and industrial
equipment.

October
5, 2012, Columbus, IN – Hyundai Heavy Industries and Cummins have announced a
50/50 joint venture partnership to manufacture MidRange engines in Korea
extending from 150 to 300 horsepower output for application in a wide range of
Hyundai construction and industrial
equipment.

The launch of the Hyundai Cummins Engine Company joint venture took place in
Ulsan, Korea, with a ceremonial co-signing of the agreement by Byeong-Ku Choe,
COO and president of Hyundai Construction Equipment Division, and Rich Freeland,
Cummins vice-president and president of Engine Business.

The HCEC joint venture operation will be located in the city of Daegu, Korea,
with engine manufacturing to commence in 2014. The new facility will have a
capacity in place to build more than 50,000 engines per year at full
production.

HCEC will supply engines spanning the MidRange 5.9-liter to 8.9-liter
displacement range for Hyundai excavators, wheel loaders and industrial
equipment built in Ulsan and other locations worldwide. The joint venture
engines will power Hyundai equipment in markets with high growth potential such
as Russia, the Middle East, Africa and Southeast Asia.

“I am delighted to announce our new engine joint venture with Hyundai, one of
the most highly respected companies in the global construction equipment
industry and for many years an important customer of Cummins off-highway
business,” Freeland said. “The formation of the HCEC joint venture takes
Cummins working relationship with Hyundai to a much closer level, where we can
share our respective expertise and better position both parent companies for
growth in markets around the world.”

Byeong-Ku Choe said, “Cummins is an important engine supplier to Hyundai, with
a proven capability to improve the performance of our equipment, so our new
HCEC joint venture can be seen as a natural progression of this longstanding
cooperation. We are very excited at the opportunities
the joint venture will realize as we strive together in partnership to achieve
mutual success.”

The HCEC operation will be equipped with a state-of-the-art engine production
line and highly advanced test cells. Cost-effective manufacturing procedures
will be applied at HCEC, following common practices used across Cummins global
network of MidRange engine manufacturing facilities. Combined with Hyundai
engineering and quality expertise, this will ensure world-class manufacturing
standards at the new plant.