Hyundai and Cummins joint ventures

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. This factory will provide HHI with a steady supply of high quality engi
November 27, 2012 Read time: 2 mins

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 236 Hyundai 196 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.
Engines, Components & Tyres

For more information on companies in this article

Related Content

  • Manufacturing and research in China
    April 24, 2013
    Cummins and LiuGong are increasing their partnership in China, while Dana is opening a new research and development facility in the country. The first engines built in the Chinese joint venture facility established by Cummins and LiuGong are now rolling off the production line. The factory, located in Liuzhou in Guangxi Province, is part of a 50:50 partnership between the two companies called Guangxi Cummins Engine Company. The facility is now making L9.3 engines to meet the demand of both LiuGong and other
    Read More
  • Boom in Asian infrastructure investment
    April 5, 2012
    Investment in China and India continues unabated, but other nations on the continent are eager to attract companies as Patrick Smith reports Asia is still booming despite the current economic crisis, and new infrastructure programmes are constantly coming on stream. Powerhouses China and India, with their double-digit growth figures and huge infrastructure plans (in scope and cost), are leading the way and are still magnets for businesses wishing to expand, both in terms of facilities and customers. But oth
    Read More
  • XCMG boosting capacity
    January 6, 2017
    Increased manufacturing capacity has been a key focus for XCMG in recent years, with the firm having committed to upgrading its production facilities. XCMG has invested heavily in new manufacturing capacity for its ranges of cranes and wheeled loaders and both the Heavy Machinery and Wheeled Loader divisions now have new factories. The heavy crane facility produces machines in the 90tonne category and above and all production moved to the new plant in 2012 as the old factory was too small. The new facility
    Read More
  • XCMG boosting capacity
    November 26, 2012
    Increased manufacturing capacity has been a key focus for XCMG in recent years, with the firm having committed to upgrading its production facilities. XCMG has invested heavily in new manufacturing capacity for its ranges of cranes and wheeled loaders and both the Heavy Machinery and Wheeled Loader divisions now have new factories. The heavy crane facility produces machines in the 90tonne category and above and all production moved to the new plant in 2012 as the old factory was too small. The new facility
    Read More

Highlighted Content