Cummins Fuel Systems Plant in China Begins Production
Wuhan Facility is First Cummins Fuel Systems Plant Outside North America
WUHAN, China--(BUSINESS WIRE)--
Cummins (NYSE:CMI) today announced the opening of its first fuel systems manufacturing site outside of North America, the Cummins Fuel Systems Wuhan Plant.
Wuhan, the capital city of Central China's Hubei Province, also is home to a regional Cummins service center and a technical center joint venture owned by Cummins and Dongfeng Motor Company. Cummins has made an initial investment of $10 million into the plant, which will manufacture Cummins Common Rail fuel pumps and CELECT injectors/fuel pumps, primarily for the China market.
"Advanced fuel systems is the key to optimizing combustion in order to deliver products that meet both advanced emissions standards and customer performance requirements," said Ray Amlung, Vice President and General Manager of Cummins Fuel Systems. "The Wuhan production facility will provide Cummins and our local partners with critical access to our industry-leading fuel systems technology and products as the country moves toward Euro III in 2008 and Euro IV most likely in 2011."
John Watkins, President of Cummins East Asia, added: "The Cummins Wuhan Fuel Systems Plant is an important part of our long-term commitment to bring clean power technology and products to our partners and customers in the Chinese market. We will meet emissions standards and customer needs with locally-manufactured products. The Wuhan-built fuel systems will support the on-highway engines manufactured by two of our China engine joint ventures, Dongfeng Cummins and Xi'an Cummins."
The Cummins Fuel Systems Wuhan Plant joins Cummins Turbo Technologies (formerly Holset) and Cummins Filtration (formerly Fleetguard) to become the third Cummins components business unit with local production in the China diesel market. When Cummins opens its Emission Solutions exhaust aftertreatment plant in Beijing later this year, Cummins will be the only foreign maker capable of manufacturing products in all four critical engine sub-systems - filtration, air handling, fuel systems and exhaust aftertreatment - in the emerging China market.
Cummins Fuel Systems designs and manufactures new and replacement fuel systems primarily for heavy-duty on-highway diesel engine applications. The Cummins Engine business and Scania are the primary customers for the fuel systems business. Scania is Cummins' partner in two fuel systems joint ventures.
The Cummins Scania HPI joint venture currently manufactures fuel systems that are used by both companies in current products. In August 2005, the Cummins-Scania XPI Manufacturing LLP (Cummins-Scania XPI) joint venture was formed to design, develop and manufacture the next generation of fuel systems for use in 2007 and beyond. In addition to the new plant in Wuhan, Cummins Fuel Systems has production operations in Columbus, Ind.; El Paso, Texas and Juarez, Mexico.
Cummins in China
Cummins is the largest foreign investor in the Chinese diesel engine industry. The Company's ties to the country date back to 1975 when then-CEO J. Irwin Miller led the first Cummins delegation to Beijing, making him one of the first American business leaders to seek opportunities in China.
Cummins began licensing its engine technology in China in 1981 and formed its first joint venture in the country in 1995. Today, Cummins operates 21 facilities in China with more than 5,400 staff, 14 manufacturing plants, 12 distributor locations and a regional R&D center.
About Cummins
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 serves customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $739 million on sales of $13.05 billion in 2007. Press releases can be found on the Web at www.cummins.com.
Forward-looking disclosure statement
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.
Source: Cummins Inc.
Released April 8, 2008