New engine supply joint venture between Hyundai and Cummins

Hyundai Heavy Industries (HHI) and Cummins are setting up a joint venture to produce engines in South Korea for the earthmoving equipment market. The two companies are investing US$33 million each into the project, which will be called Hyundai Cummins Engine Company and will have its factory located in Daegu. Production is scheduled to commence in 2014, with capacity reaching 50,000 engines/year once the facility is fully commissioned.
September 26, 2012 Read time: 1 min
The strategic joint venture between Hyundai and Cummins for engine production in South Korea will provide business growth for both partners
236 Hyundai Heavy Industries (HHI) and 196 Cummins are setting up a joint venture to produce engines in South Korea for the earthmoving equipment market. The two companies are investing US$33 million each into the project, which will be called Hyundai Cummins Engine Company and will have its factory located in Daegu. Production is scheduled to commence in 2014, with capacity reaching 50,000 engines/year once the facility is fully commissioned. This factory will provide HHI with a steady supply of high quality engines that can be made available to meet market demands. Sales are expected to reach $282 million in 2014 and are predicted to grow, with a target of $3.53 billion set for 2022 by which time the plant should employ 5,300. HHI says that the new joint venture forms part of its plans to become one of the world’s top three manufacturers of construction equipment by 2016 on annual sales of $9.1 billion.

For more information on companies in this article

Related Content

  • Alternative power for earthmoving
    May 22, 2023
    Since the 1920s, the diesel engine has dominated the earthmoving machinery sector as a means of motive power but that is now changing
    Read More
  • China looking to export construction machines
    March 16, 2012
    Chinese firms are looking to develop overseas sales but are using very different strategies – Mike Woof reports. Aggressive expansion plans will see Chinese manufacturers boosting overseas sales in coming years. These companies are developing bigger sales profiles around the world, particularly in emergent markets such as Africa, the Middle East and Latin America. It is worth noting too that Chinese products continue to gain in terms of quality and performance. For LiuGong, Sany, Shantui, XCMG and Zoomlion
    Read More
  • Export focus for XCMG, with Latin America as key territory
    November 13, 2014
    Exports are crucial to XCMG’s growth and its aim to becoming a dominant player in the worldwide construction machinery market – Mike Woof writes One of China’s biggest construction equipment manufacturers, XCMG has a high profile, and particularly in the country’s home market. XCMG is a leader in key equipment categories such as concrete pumping and lifting technologies. The firm’s 4,000tonne crawler crane introduced two years ago has already proven its worth in a massive industrial construction appl
    Read More
  • Export focus for XCMG, with Latin America as key territory
    January 6, 2017
    Exports are crucial to XCMG’s growth and its aim to becoming a dominant player in the worldwide construction machinery market – Mike Woof writes One of China’s biggest construction equipment manufacturers, XCMG has a high profile, and particularly in the country’s home market. XCMG is a leader in key equipment categories such as concrete pumping and lifting technologies. The firm’s 4,000tonne crawler crane introduced two years ago has already proven its worth in a massive industrial construction appl
    Read More

Highlighted Content