Guangxi Cummins Engine Company Celebrates Official Start of Operations with Completion of First Engine


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LIUZHOU CITY, Guangxi Province, China--March 14, 2013: Today, the first Cummins L9.3 engine rolled off the production line at Guangxi Cummins Engine Company Limited (Guangxi Cummins), the 50:50 joint venture between Cummins Inc. and LiuGong Machinery (Shenzhen: 000528), marking the official start of operations in Liuzhou, southern China.

“This new engine will complement Cummins existing product and manufacturing capabilities in China and focus specifically on the mainstream domestic construction markets”

The 9.3-liter engine is designed and built in China specifically for construction equipment to meet the demand of both LiuGong and other equipment manufacturers. The engine is available in multiple versions to meet various off-road emissions standards.

"This new engine will complement Cummins existing product and manufacturing capabilities in China and focus specifically on the mainstream domestic construction markets," said Dave Crompton, Vice President, Engine Business, Cummins Inc. "It signifies an important move for Cummins to invest in meeting the unique demands of the local market by optimizing for performance, fuel economy and cost. I am confident that this customer-focused approach is laying a solid foundation for the continuous success of the new product platform and that of the new joint venture."

Evolved from the world class Cummins L8.9 engine platform, the L9.3 engine is rated 162 kW (220 hp) and offers superior low-end torque for wheel-loader applications with 5T-bucket load. With specially designed and patented power curve for wheel loaders and optimized combustion for wheel loader duty cycles, the L9.3 engine is uniquely positioned to meet customer requirements for strong power delivery, fast response and operational efficiency. The optimized components and engine features are engineered to deliver high reliability, improved fuel efficiency and performance for off-highway customers.

"Guangxi Cummins enjoys a natural advantage in leveraging Cummins technological leadership and LiuGong's rich application experience in the construction machinery market," said Steve Chapman, Group Vice President for China and Russia, Cummins Inc. "This unique value proposition is of vital importance while we explore more market opportunities with an expanded product portfolio. As construction machinery OEMs in China play an increasingly important role in the global market, we expect that the development and optimization of Cummins engines for their equipment will add value to the industry."

Guangxi Cummins is the first Cummins manufacturing facility in China dedicated to providing power for the construction machinery market. It is also one of the largest production facilities for off-highway diesel engines in China. The total investment on the company exceeds RMB 1 billion (US $160 million). Covering an area of 200,000 square meters, the initial production capacity is expected to reach 50,000 units per year, with the ability to expand the volume higher in the future when market demands increase.

"The establishment of Guangxi Cummins further expands the decade-long strategic cooperation between Cummins and LiuGong. We are delighted to be able to complement our vigor and strength with Cummins' expertise and leading technology," said Zeng Guang'an, President of LiuGong. "The joint venture will be vital in building the unique competitive advantage of LiuGong construction machinery in the China market, as well as in our efforts to penetrate into international markets."

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