SEOUL, KOREA - Hyundai Heavy Industries, jointly with Cummins Inc. of the United States, a Fortune 500 company specializing in manufacturing of engines, filtration, and power generation products, has completed the construction of a plant in Daegu and begin production by next month.

 

The new joint venture "Hyundai-Cummins Engine" held a completion ceremony on May 12 at the Technopolis Industrial Zone in Daegu, with Daegu Metropolitan City Mayor Kim Beom-il, Cummins vice president Dave Crompton, and Hyundai Heavy Industries chairman Lee Jae-sung in attendance. the plant plans to produce up to 50,000 construction machine engines by 2020, with US$500 million annual sales.

 

The plant will assemble a total of four diesel engines from next month after pilot production, including those for excavator, wheel loader, forklift, and power generator all of which are produced by Hyundai Heavy.

 

A Hyundai Heavy Industries official said, "Up until now, we have relied on Cummins for engine components for our construction equipment. Now that we have established a joint venture, we will be able to save production cost while improving product quality." "Even for Cummins, the world's largest company in construction equipment engines, this is an opportunity to expand the market in Northeast Asia," he added.

 

The company expects that the new plant will create as many as 3,700 jobs directly and indirectly, contributing in an important way to the local economy in Daegu.