Production start for Liugong & Cummins joint venture

By Helen Wright15 March 2013

The first engine has rolled off the new production line at China-based Guangxi Cummins Engine Company, the 50:50 joint venture between Cummins and Liugong.

This marks the official production start for the 9.3 litre, 162 kW Cummins L9.3 engine, which is designed and built in China specifically for construction equipment to meet the demand of both Liugong and other equipment manufacturers.

Available in either Tier 2 or Tier 3 emissions-compliant configuration, the L9.3 is designed for wheeled loaders with a 5 tonne bucket load and has been specially optimised for wheeled loader duty cycles.

The joint venture invested CNY 1 billion (US$ 160 million) in the Guangxi Cummins factory, which covers an area of 200,000 m2 and is based in in Liuzhou City, Guangxi Province, southern China.

Initial production capacity is expected to reach 50,000 units per year, with the ability to expand the volume higher in the future when market demands increase.

Strategic co-operation

Zeng Guang’an, president of Liugong, said, “The establishment of Guangxi Cummins further expands the decade-long strategic co-operation between Cummins and Liugong. The joint venture will be vital in building the unique competitive advantage of Liugong construction machinery in the China market, as well as in our efforts to penetrate into international markets.”

Dave Crompton, vice president of Cummins’ engine business said the new engine would complement the manufacturer’s existing product and manufacturing capabilities in China, focussing specifically on the mainstream domestic construction markets.

“It signifies an important move for Cummins to invest in meeting the unique demands of the local market by optimising for performance, fuel economy and cost,” he said.

And Cummins group vice president for China and Russia, Steve Chapman, added, “As construction machinery OEMs in China play an increasingly important role in the global market, we expect that the development and optimisation of Cummins engines for their equipment will add value to the industry.”

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