Hyundai and Cummins complete $100mn engine factory
HCEC inaugurates its giant earthmover engine factory in South Korea
Hyundai Cummins Engine Company (HCEC) has inaugurated its giant earthmover engine factory in Daegu, South Korea.
Hyundai Heavy Industries (HHI) and Cummins penned an agreement to establish the factory in 2012. The $100mn, 78,045m2 facility has the capacity to produce 50,000 diesel engines per year.
Speaking at the completion ceremony, Lee Jai-seong, chairman and CEO of HHI, said: “I would like to extend my sincerest appreciation to Daegu Metropolitan City and its citizens for their strong support to make today’s inauguration ceremony possible. It is our belief that when HCEC engine factory goes into operation, it will play an active role in galvanising the local economy.”
Also present at the official opening were Dave Crampton, Cummins’ vice president of heavy duty, mid range, and light duty engine business; Kim Bum-il, mayor of Daegu Metropolitan City; Choi Byung-rok, commissioner of Daegu-Gyungbuk Free Economic Zone; and 400 other guests.
HCEC, a joint venture between HHI and Cummins, aims to achieve annual sales of $500mn by 2020, and is expected to create approximately 3,700 direct and indirect jobs in the region by 2020.
By providing a stable supply of high-quality engines, it is hoped that the engine factory will enable HHI’s Construction Equipment division to continue to strengthen the performance and quality of its machinery.