Dongfeng and Cummins Inc., a global power leaders signed a joint-venture agreement on Oct.20, 2011 to build a new MidRange engines manufacturing facility in Liuzhou, Guangxi Province, in southern China. The agreement was signed at Dongfeng headquarters in Liuzhou by Wang Xiaohua, Chairman of Guangxi Dongfeng Machinery Co. Ltd. and Steve Chapman, Group Vice President of Cummins and Chairman of Cummins China.


The new joint-venture operation, named Guangxi Cummins Industrial Power Co., Ltd., will commence engine production of MidRange engines meeting Tier 2 and Tier 3 emissions by 2013. The engines will be fully localized in China and adapted for construction equipment usage by the Guangxi Cummins Industrial Power jointventure to meet the demand of both Dongfeng and other equipment manufacturers in China.


“The joint-venture announced today with Dongfeng will create the foundation for both partners to significantly expand 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,” said Tom Linebarger, President and Chief Operating Officer, Cummins Inc.


“It is clear that Dongfeng shares many important values with Cummins. Dongfeng focuses on the needs of its customers and is committed to excellence in everything it does. These shared values will help drive our new joint-venture forward to achieve its goals,” he said.


Zeng Guang’an, Vice Chairman and President of Guangxi Dongfeng Machinery Co., Ltd was also very pleased to the further cooperation with Cummins, “The joint venture between Dongfeng and Cummins can be seen as a natural progression of our successful 10-year relationship and we are delighted to become even stronger partners”.


“By combining our equipment expertise with Cummins world class engine capability, we know we have the right formula in place for our new Guangxi Cummins Industrial Power joint-venture to succeed. Initial operations will begin as early as 2012 with engine kit assembly, providing a useful lead-in to full production engines in 2013.” added Zeng Guang’an.


This new investment will complement Cummins existing manufacturing capabilities in China that have focused primarily on the automotive market. Development and optimization of Cummins premium MidRange engines specially for China will add significant value to the construction machinery industry in China, which has a strong and growing demand for high performance, reliable engine power. Dongfeng and Cummins will both archive great development by leaps and bounds in the foreseeable future.