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Another China Venture For Cummins

Posted on December 23, 2011

Cummins Inc. and XiangFan Kanghao M&E Engineering Co. Ltd. have announced a 50:50 joint-venture to develop, assemble and distribute generator drive engines from Dongfeng Cummins Engine Co. Ltd. (DCEC) and Xi’an Cummins Engine Co. (XCEC) to China-based generator manufacturers. Financial details were not disclosed.

The joint venture, which will be based in Xiangyang City of Hubei Province, is scheduled to begin operation in April 2012 with an installed capacity to handle up to 40 000 units per year and capability to expand in the future, Cummins said. The joint venture will become the exclusive channel partner for DCEC and XCEC G-Drive engines in China.

“The joint venture aims at integrating the strong power generation business of Cummins and the unique channel resources and key component supply of Kanghao,” said Leo Zhao, general manager of Cummins Power Generation China. “The primary focus of this new partnership is to further expand the G-drive business of Cummins’ joint ventures in China, including Dongfeng Cummins and Xi’an Cummins.”

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