Contact: Stacie Adams stacie@liugong.com
+86 138 7721 2330
LIUGONG AND CUMMINS ANNOUNCE JOINT-VENTURE PARTNERSHIP TO BUILD ENGINES IN CHINA MidRange Engines Will Be Localized For Construction Equipment Market LIUZHOU, Guangxi Province, China (Oct. 20, 2011) - Cummins Inc. (NYSE: CMI) and Guangxi LiuGong Machinery Co. Ltd. (Shenzhen: 000528) announced today a joint-venture partnership to manufacture MidRange engines at a new facility to be built in Liuzhou City, Guangxi Province, in southern China. The new joint-venture operation, titled Guangxi Cummins Industrial Power Co., Ltd., will commence engine production in 2013. Volume is planned to reach 50,000 units with the capability to expand volume higher in the future.
The joint-venture agreement was signed in Liuzhou City by
Wang Xiaohua, Chairman, Guangxi LiuGong Machinery Co. Ltd.,
and Steve Chapman, Group Vice President of Cummins and
Chairman of Cummins China. The joint-venture engines will be
based on Cummins MidRange engine family meeting Tier
2 and Tier 3 emissions.
The MidRange engines will be fully localized in China and
adapted for construction equipment usage by the Guangxi
Cummins Industrial Power joint-venture to meet the demand of
both LiuGong and other equipment manufacturers in China.
This new investment in MidRange engine production will
complement Cummins existing manufacturing capabilities in
China that have focused primarily on the automotive market.
Development and optimization of Cummins premium MidRange
engines specially for China will add significant value to the
construction machinery industry in China, which has a strong
and growing demand for high performance, reliable engine
power.
"The joint-venture announced today with LiuGong will create
the foundation for both partners to
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significantly expand in the construction equipment market in
China, the largest in the world, and where
LiuGong Construction Machinery No.1 Liutai Road,
Liuzhou, Guangxi, PR China Tel: +86 772 3886926
www.liugong.com
robust demand will continue to drive growth in the years
ahead," said Tom Linebarger, President and Chief
Operating Officer, Cummins Inc.
"I am delighted that we are expanding our long term
relationship with LiuGong, one of the leading and most
respected equipment companies in China. LiuGong has achieved
outstanding growth in recent years and is poised to expand
its business even faster in the years ahead.
"It is clear that LiuGong shares many important values with
Cummins. LiuGong focuses on the needs of its customers and is
committed to excellence in everything it does. These shared
values will help drive our new joint-venture forward to
achieve its goals," said Linebarger.
Cummins currently supplies MidRange engines to LiuGong for
both its domestic market in China and for its global
operations. The joint-venture operation in Liuzhou City will
focus on introducing engines purpose-designed and fully
localized for construction equipment in China. This fit for
market approach recognizes the opportunity offered by
customizing engines to meet specific economic and operational
requirements.
"The joint venture between LiuGong and Cummins can be seen as
a natural progression of our successful 10-year relationship
and we delighted to become even stronger partners," said Zeng
Guang'an, Vice Chairman and President, Guangxi LiuGong
Machinery Co., Ltd.
"By combining our equipment expertise with Cummins world
class engine capability, we know we have the right formula in
place for our new Guangxi Cummins Industrial Power
joint-venture to succeed. Initial operations will begin as
early as 2012 with engine kit assembly, providing a useful
lead-in to full production engines in 2013." added Zeng
Guang'an.
LiuGong is one of the leading construction machinery
manufacturers with headquarter based in Liuzhou, China. As a
listed company in Shenzhen Stock Exchange, LiuGong has
extensive product lines across all construction machinery
segments and achieved sales of RMB 15.4 billion in 2010.
LiuGong offers a full line of machines to global markets,
including wheel loaders, excavators, bulldozers, rollers,
graders, pavers,
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LiuGong Construction Machinery No.1 Liutai Road,
Liuzhou, Guangxi, PR China Tel: +86 772 3886926
www.liugong.com
backhoes, skid steers, forklifts, truck mounted and crawler
cranes, and mining trucks. LiuGong has 17 manufacturing
facilities in China, India and other regions and expands
sales and service network in more than 80 countries. LiuGong
is aiming to grow into a world-class construction machinery
player with RMB 50 billion sales by 2015.
Cummins Inc., 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.
Headquartered in Columbus, Indiana (USA), Cummins employs
approximately 40,000 people worldwide and serves customers in
approximately 190 countries and territories through a network
of more than 600 company-owned and independent distributor
locations and approximately 6,000 dealer locations. Cummins
earned $1.0 billion
on sales of $13.2 billion in 2010
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LiuGong Construction Machinery No.1 Liutai Road,
Liuzhou, Guangxi, PR China Tel: +86 772 3886926
www.liugong.com