Hyundai and Cummins launch JV to build engines
JV to build engines for 'high growth' markets including Middle East
Hyundai Heavy Industries has announced a 50/50 joint venture with Cummins to build mid-size engines in Korea, with output of 112-224 kW for use in Hyundai construction and industrial equipment.
The engines will be used for Hyundai equipment in markets with "high growth potential" such as the Middle East, Russia, Africa and Southeast Asia.
A plant will be built in Daegu, Korea, with engine manufacturing to begin in 2014. At full production, the plant will have capacity to build 50,000 engines a year.
The Hyundai Cummins Engine Company (HCEC) will produce engines in the MidRange 5.9-litre to 8.9-litre displacement range, to be used in Hyundai excavators, wheel loaders and industrial equipment built in Ulsan and other Hyundai manufacturing bases.
A signing ceremony held at Hyundai's corporate HQ in Ulsan was attended by the COO of Hyundai Construction Equipment Division, Byeong-Ku Choe, and Rich Freeland, Cummins VP and President – Engine Business.
Choe said Hyundai was excited by the opportunities that the joint venture would bring.
"Cummins is an important engine supplier to Hyundai, with a proven capability to improve the performance of our equipment, so our new HCEC joint venture can be seen as a natural progression of this longstanding cooperation."