Saturday, March 29, 2008

Cummins forms China's largest engine production base in Beijing

Cummins, the world's largest independent diesel engine maker on Wednesday set up an engine joint venture with China's Beiqi Foton Motor<600166> in Beijing.

The new entity which involved an investment of RMB 2.7 billion will be able to produce 400,000 engines annually, the largest engine producer in China. The two parties each hold 50% stakes in the venture.

The 2.8-litre and 3.8-litre engines, Cummins's newest models, are expected to be put into batch production in May and September next year respectively, marking the world’s first production of the models. The two light diesel engines were designed for high-end international markets and could meet the requirements of Euro IV or above emission standards.

With the building the engine production base, engine output in Beijing will be boosted to 500,000 units.

Facilitating with the development strategy of Foton Motor, the world's largest engine production base with annual capacity of one million units is expected to be set up in Beijing in the near future.

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