Cummins and Hyundai announce construction equipment engine tie-up11 September 2012

Hyundai Heavy Industries and Cummins have announced a 50/50 joint venture partnership to manufacture 150bhp to 300bhp engines in Korea for a range of Hyundai construction and industrial equipment.

The Hyundai Cummins Engine Company (HCEC) will be located in Daegu, Korea, with engine manufacturing set to commence in 2014.

The new facility will have a capacity in place to build more than 50,000 engines a year.

HCEC will supply engines spanning its MidRange 5.9-litre to 8.9-litre displacement range for Hyundai excavators, wheel loaders and industrial equipment, built in Ulsan and other locations worldwide.

"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," says Rich Freeland, vice president and president of engine business at Cummins.

"Cummins is an important engine supplier to Hyundai, with a proven capability to improve the performance of our equipment, so our HCEC joint venture can be seen as a natural progression of this longstanding cooperation," adds Byeong-Ku Choe, COO and president of Hyundai Construction Equipment Division.

The HCEC operation will be equipped with a state-of-the-art engine production line and test cells. Manufacturing practices will follow those used across Cummins global network of MidRange engine manufacturing facilities.

John Challen

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