Cummins to invest additional US$300 million
October 25, 2005
The world’s leading diesel engine producer, Columbus, Indiana-based Cummins, announced here on October 14 that it will add US$300 million worth of investment in China in the next five years. The company also plans to expand its business volume in China from $1 billion in 2004 to $3 billion in 2010.
After 30 years of development, China has become the largest overseas market for Cummins in the world, said Tim Solso, board chairman and CEO of Cummins. As the Chinese auto market
expands gradually and demand for auto parts and components rises sharply, Cummins sees a huge market space and development potential in China, said Solso.
He added that long-term cooperation between Cummins and its Chinese partners had also laid a solid foundation for the American company’s future development in the country. Cummins has so far invested US$140 million in China and owns 12 companies and enterprises in the country.
New investments will be earmarked for the joint venture production of 11-liter engines with the Shaanxi Automotive Industry Corporation in Xian, the cooperative development of new-generation of 13-liter heavy truck engines and exhaust systems with Dongfeng Motors Co Ltd, and the production of natural gas engines in China.
In addition, investment will also be allocated to the R&D center, which has been jointly set up by Cummins and Dongfeng Motors Co Ltd. In order to let its board members feel the strong vigor of the Chinese market and Cummins business in China, Cummins held its 2005 global board meeting in China, from October 8 to 14. It was the first time in the last 15 years that Cummins had held a global board meeting in a place other than the United States.
Cummins, a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Cummins serves customers in more than 160 countries and territories through its network of 550 Company-owned and independent distributor locations and more than 5,000 dealer locations. With more than 28,000 employees worldwide, Cummins reported sales of $8.4 billion in 2004.
The company is organized into four distinct but complementary business units. The Engine Business manufactures and markets a broad range of diesel and natural gas engines and aftermarket products for automotive, industrial and power generation applications. Cummins engines can be found in medium- and heavy-duty trucks, buses, recreational vehicles, light commercial vehicles and pickup trucks in on-highway applications, and in equipment in the construction, mining, agriculture, marine, rail and government markets.
The Power Generation Business is a global provider of power generations systems, components and services in standby power, distributed power generation, as well as auxiliary power in mobile applications to meet the needs of a diversified customer base.
The Distribution Business consists of Cummins wholly- owned and majority-owned joint ventures that provide Cummins products, parts, and service through more than 116 locations in nearly 80 countries and territories worldwide.
The fourth business unit is the Components Business, organized into four groups: Fleetguard (liquid and air filtration systems and Nelson acoustic exhaust systems found in heavy-, medium- and light-duty trucks), Emission Solutions (a provider of total system solutions that help customers meet the growing requirements to reduce oxides of Nitrogen (NOx) and particulate matter (PM) emissions from engine and power plant exhaust), Holset Engineering Co (designs and produces a comprehensive range of turbochargers and related products for diesel and gas engines in the 3.8 to 25 liter turbocharger range targeted primarily at the commercial vehicle and industrial markets), and Fuel Systems (designs, manufactures and remanufactures fuel systems for use on Cummins and other engines).
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