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Guangxi Cummins Engine Company Celebrates Official Start of Operations with Completion of First Engine

Wednesday, March 20, 2013

The first Cummins L9.3 engine has rolled off the production line at Guangxi Cummins Engine Company Limited (Guangxi Cummins), the 50:50 joint venture between Cummins Inc. (NYSE: CMI) and LiuGong Machinery (Shenzhen: 000528), marking the official start of operations in Liuzhou, southern China.

The 9.3-liter engine is designed and built in China specifically for construction equipment to meet the demand of both LiuGong and other equipment manufacturers. The engine is available in multiple versions to meet various off-road emissions standards.

“This new engine will complement Cummins existing product and manufacturing capabilities in China and focus specifically on the mainstream domestic construction markets,” said Dave Crompton, Vice President, Engine Business, Cummins Inc. “It signifies an important move for Cummins to invest in meeting the unique demands of the local market by optimizing for performance, fuel economy and cost. I am confident that this customer-focused approach is laying a solid foundation for the continuous success of the new product platform and that of the new joint venture.”

Evolved from the world class Cummins L8.9 engine platform, the L9.3 engine is rated 162 kW (220 hp) and offers superior low-end torque for wheel-loader applications with 5T-bucket load. With specially designed and patented power curve for wheel loaders and optimized combustion for wheel loader duty cycles, the L9.3 engine is uniquely positioned to meet customer requirements for strong power delivery, fast response and operational efficiency. The optimized components and engine features are engineered to deliver high reliability, improved fuel efficiency and performance for off-highway customers.

“Guangxi Cummins enjoys a natural advantage in leveraging Cummins technological leadership and LiuGong’s rich application experience in the construction machinery market.” said Steve Chapman, Group Vice President for China and Russia, Cummins Inc. “This unique value proposition is of vital importance while we explore more market opportunities with an expanded product portfolio. As construction machinery OEMs in China play an increasingly important role in the global market, we expect that the development and optimization of Cummins engines for their equipment will add value to the industry.”

Guangxi Cummins is the first Cummins manufacturing facility in China dedicated to providing power for the construction machinery market. It is also one of the largest production facilities for off-highway diesel engines in China. The total investment on the company exceeds RMB 1 billion (US $160 million). Covering an area of 200,000 square meters, the 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.

“The establishment of Guangxi Cummins further expands the decade-long strategic cooperation between Cummins and LiuGong. We are delighted to be able to complement our vigor and strength with Cummins’ expertise and leading technology,” said Zeng Guang’an, President of 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.”

About LiuGong
For more than 50 years, LiuGong Machinery Corporation has been a leader in China’s construction equipment manufacturing industry. From building the country’s first modern wheel loader, LiuGong has evolved to become one of the fastest growing, global, full-line CE companies in the world. LiuGong delivers opportunity to its employees, quality products and services to its customers, financial success to its investors, and community support in the regions it serves.

About Cummins
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins currently employs approximately 46,000 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and approximately 6,500 dealer locations. Cummins earned $1.65 billion on sales of $17.3 billion in 2012. Press releases can be found on the Web at www.cummins.com or www.cumminsengines.com. Follow Cummins on Twitter at http://twitter.com/cumminsengines and on YouTube at http://youtube.com/cumminsengines.

About Cummins China
China has become one of Cummins fastest-growing geographical markets. In 2012, Cummins’ consolidated and unconsolidated sales in China exceeded $3 billion. As the largest foreign investor in China's diesel engine sector, Cummins operates 28 facilities in China, including 17 manufacturing sites that produce engines, turbochargers, filters, emission solutions, fuel systems, alternators and electrical power generation systems. In the aftermarket support area, Cummins has 12 regional service centers, 34 Customer Support Platforms and over 2000 authorized dealers of Cummins wholly-owned and JV entities across the region.

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