Liugong and Cummins form joint venture

Liugong and Cummins have agreed a joint venture partnership to manufacture engines for construction equipment in China.

The joint venture business, known as Guangxi Cummins Industrial Power Co, plans to begin producing engines from a new facility to be built in Liuzhou City, Guangxi Province, southern China, in 2013.

The joint-venture engines will be based on Cummins MidRange engine family meeting Tier 2 and Tier 3 emissions legislation. The range currently starts at 185 hp (136 kW) and tops out at 350 hp (257 kW).

Cummins already supplies MidRange engines to Liugong for both its domestic market in China and for its global operations. The joint-venture operation will focus on introducing purpose-designed and fully localised engines for both Liugong and other construction equipment manufacturers in China.

Volume is planned to reach 50000 units with the capacity for future expansion.

Tom Linebarger, Cummins president and COO, said, "The joint-venture announced today with Liugong will create the foundation for both partners to expand significantly in the construction equipment market in China, the largest in the world, and where robust demand will continue to drive growth in the years ahead."

Zeng Guang'an, vice chairman and president of Guangxi Liugong Machinery, added, "The joint venture between Liugong and Cummins can be seen as a natural progression of our successful 10-year relationship and we are delighted to become even stronger partners."