VANCOUVER, BC, CANADA — Cummins Westport Inc., through its parent Cummins Inc., and Dongfeng Cummins Engine Co. Ltd. (DCEC) of China have signed a license agreement enabling DCEC to manufacture CWI natural gas B-series engines in China.
CWI will provide the natural gas-specific technology for the 150 to 230 horsepower B Gas International (BGI) engine to be manufactured by DCEC at its manufacturing facilities located in Xiangfan, Hubei Province. Manufacturing is expected to begin in 2006.
“CWI has a strong presence in China with its natural gas engines powering transit buses in cities such as Beijing, Xian, and Urumqi. The next logical step is to manufacture locally in China in order to access a broader customer base, and to continue to lower product cost,” said Guan Saw, president of Cummins Westport Inc. “Local manufacturing and assembly of our BGI product by DCEC is an important element of CWI’s growth strategy in China.”
DCEC was established in 1996 as a 50/50 joint venture between Cummins and Dongfeng Motors (DFM). Currently, Cummins has a license agreement with DCEC to manufacture B and C diesel engines in China, and the company produced over 120,000 engines in 2004. DCEC will use its existing assembly line for the production of the CWI BGI engine.
Dongfeng Motors is an OEM that manufactures trucks and buses, and this agreement will enable it to add a natural gas engine to its product offering. Service support will be provided through both the DFM and Cummins distribution networks in China. CWI will also market the BGI to other OEMs in China, and investigate opportunities for export.