Hyundai and Cummins complete JV factory

Hyundai Cummins Engine Company (HCEC), a joint venture between construction equipment maker Hyundai Heavy Industries and diesel engine manufacturer Cummins, has completed construction of a 78,045 m² engine factory for earthmovers in Daegu, South Korea. The factory will supply Hyundai with engines for its equipment.

In September 2012 Hyundai and Cummins closed an agreement to establish the engine factory, capable of producing 50,000 diesel engines each year with an investment of KRW 100 billion (US$ 98 million).

HCEC said it was aiming for annual sales of US$ 500 million by 2020, and expects to create some 3,700 direct and indirect jobs in the region by 2020.

Speaking at the completion ceremony for the factory In the ceremony, Lee Jai-seong, chairman and CEO of Hyundai Heavy Industries said, “I would like to extend my sincerest appreciation to Daegu Metropolitan City and its citizen for their strong support to make today’s inauguration ceremony possible. It is our belief that when HCEC engine factory goes into operation, it will play an active role in galvanizing the local economy.”