COLUMBUS, IN — Global engine manufacturer Cummins Inc. has signed a joint venture contract agreement with Dongfeng Cummins Engine Co. Ltd. (DCEC) to establish its first technical center in China. The facility is expected to open in the first quarter of 2006 in the central China city of Wuhan.
The Cummins East Asia Tech Center will provide engineering and technical services for the full range of Cummins products built in China, including diesel and natural gas engines, power generators, turbochargers and filtration products.
The center, a 55-45 joint venture between Cummins and DCEC, respectively, will become Cummins’ first technical center in China. DCEC is a 50-50 joint venture between Cummins and Dongfeng Automobile Co. Ltd.
The agreement expands the 18-year partnership between Cummins and Dongfeng in China that includes a joint venture engine plant in Xiangfan, which is Cummins second-largest manufacturing facility by volume, and a joint venture filtration plant, Shanghai Fleetguard.
“Cummins and Dongfeng have enjoyed a strong and successful partnership for many years, and the Cummins East Asia Tech Center will allow both companies to take even greater advantage of China’s continued growth,” said Cummins Chairman and CEO Tim Solso, who was in Wuhan to witness the signing ceremony as part of a weeklong visit to Cummins operations in China. “China is one of our most important international markets, and the creation of this technical center is crucial to our growth strategy in the country.”
The agreement was signed by John Watkins, President of Cummins East Asia and Chairman and General Manager, Cummins China Investment Co. Ltd., and Zhu Fushou, General Manager of DFAC and Vice Chairman of DCEC with local and regional governmental officials in attendance. Cummins and DCEC will together make an initial investment of $10 million in 2005 to get the first phase of the center built and running.
The center will be located in the Wuhan Economic and Technological Development Zone. Wuhan, the capital of Hubei Province, is the fourth largest city in China and is a leading industrial center. The city’s central location, relative proximity to Dongfeng Cummins Engine Co. in Xiangfan and a strong local engineering talent pool were all factors in choosing Wuhan as the site for the technical center.
The center will provide product development, emissions testing and customer application engineering, allowing Cummins and DCEC to tailor and develop products for the China market. The center also would allow both companies to better support future emissions standards for engines produced in China.
Cummins said sales in China will exceed $1 billion this year, representing nearly 10 percent of the company’s total consolidated and unconsolidated revenue.
For more information, go to: www.cummins.com.
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