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Cummins Inc. and Chongqing Machinery and Electric Co. Break Ground on New Plant in China

Jan 27,2015

Chongqing, China (Jan. 27, 2015) - Chongqing Cummins Engine Company (CCEC), a 50:50 joint venture between Cummins and Chongqing Machinery and Electric Co., Ltd. (CQME), broke ground for its new plant in Northern New District of Chongqing on Jan. 27, 2015. Covering approximately 66 acres, CCEC’s new facility will include a tech center dedicated to High Horsepower (HHP) engine engineering and a new engine manufacturing plant. Construction on the tech center is expected to finish in 2016, and the plant is expected to be put into use in 2018.

Representatives from both Cummins and CQME attended the groundbreaking ceremony; they included Wang Hongjie, General Manager of China EBU HHP Business and Customer Support; Jim Trueblood, VP of HHP Engineering; Iain Barrowman, VP of HHP Operations; Peng Lixin, VP of China Engineering; Wang Yuxiang, Chairman of CQME; and Weng Jieming, Standing Vice Mayor of Chongqing.

The new plant and tech center will further fortify CCEC’s leading position in China’s HHP power industry: the new production and assembly line will meet the capacity requirements including 3 new HHP engine platforms, namely QSK50, QSK60 and QSK72, to be introduced for local production; the engineering center on HHP engine technology will help tailor product and technology to meet the specific and diversified market demands.

“The new plant project of CCEC sets another milestone for Cummins in China. From the first licensee agreement in 1981, first engine joint venture in 1995, to establishing HHP engine base, Chongqing has played a key role in our HHP engine development and production,” Wang Hongjie said. “The new plant is set for advanced HHP engine platform upgrade and local production, delivering high performance power to meet the specific demands of Chinese customers. The exploration on alternative fuel application will add great value towards our ultimate goal of sustainable development.”

CCEC is the first engine joint venture Cummins established in China. Since its establishment in 1995, the Company has contributed significantly to Cummins’ robust growth in China. CCEC’s current product line includes M11, N14, QSN, K19, QSK19, K38, QSK38 and K50. The local production of three new HHP electronic platforms will position the Company well to capture more growth opportunities in China’s robust HHP markets including mining, oil & gas, marine and power generation.

Wang Yuxiang, Chairman of CQME was confident on CCEC’s future capability, “We would expect CCEC to continuously drive technological development and industrial upgrade, create real values for customers to drive their success, and contribute to the growth of the entire industry in China.”

According to the latest plan, the new HHP tech center will finish construction in 2016. The addition of HHP engineering capabilities in China will further boost our capabilities in developing innovative solutions to meet the diverse demands of customers. Equipped with advanced environmentally-friendly engine test devices, such as high power electric dynamometer, the new tech center will be able to facilitate performance test on HHP engines, reliability research, emissions test and other test cells.

The new manufacturing plant of CCEC is designed to achieve production capacity to sustain 1 billion USD annual revenue in phase I, and to meet the demand of 2 billion USD revenue in the long run. The advanced production facilities will include cylinder block machining line, engine assembly line, engine delivery test line, and equipment production line.

About Cummins

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins currently employs approximately 48,000 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and approximately 6,500 dealer locations. Cummins earned $1.48 billion on sales of $17.3 billion in 2013. Press releases can be found on the Web at www.cummins.com. Follow Cummins on Twitter at @Cummins and on YouTube at CumminsInc.


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