Hyundai Heavy Industries and Cummins have announced a 50/50 joint venture partnership to manufacture midrange engines in Korea extending from 150 to 300 horsepower for application in a wide range of Hyundai construction and industrial equipment.
The launch of the Hyundai Cummins Engine Company (HCEC) joint venture will be located in Daegu, Korea, with engine manufacturing to commence in 2014. The new facility will have a capacity in place to build more than 50,000 engines per year at full production.
HCEC will supply engines spanning the 5.9- to 8.9-liter displacement range for Hyundai excavators, wheel loaders and industrial equipment built in Ulsan and other locations worldwide. The joint venture engines will power Hyundai equipment in markets with high growth potential such as Russia, the Middle East, Africa and Southeast Asia.
“I am delighted to announce our new engine joint venture with Hyundai, one of the most highly respected companies in the global construction equipment industry and for many years an important customer of Cummins off-highway business,” said Rich Freeland, Cummins VP and president - engine business.
“The formation of the HCEC joint venture takes Cummins working relationship with Hyundai to a much closer level, where we can share our respective expertise and better position both parent companies for growth in markets around the world,” added Freeland.
Byeong-Ku Choe, COO and president - Hyundai construction equipment division, commented that “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.