Valvoline Signs Joint Venture With Cummins China
9 February 2000
Valvoline Signs Joint Venture With Cummins China
LEXINGTON, Ky.--Feb. 8, 2000--Agreement strengthens Valvoline/Cummins alliance in Asian market
In a move to strengthen existing distribution and promotion channels in the Asian marketplace, The Valvoline Company, a division of Ashland Inc. , has signed a joint venture agreement with Cummins China to form V C Lubricating Oil Co. Ltd. The new Shanghai-based company will market Valvoline/Cummins lubricants to the heavy duty and commercial sectors in China, Taiwan, Hong Kong and Macau.
"We believe partnering with an established professional organization such as Cummins greatly enhances Valvoline's reputation as a quality commercial lubricant manufacturer and marketer in China," said William F. Dempsey, senior vice president and managing director of Valvoline International.
Built upon the existing Valvoline/Cummins worldwide alliance, this 50/50 joint venture stems directly from the success of a similar agreement between Valvoline and Cummins India two years ago and expands both companies' strong presence in Asia. Cummins already has two large engine manufacturing joint ventures in China and a large distribution network of imported and locally manufactured power generation equipment.
"This project is an integral part of Valvoline Asia Pacific's strategy of prioritizing our investment and personnel structures," said Jackson B. Davis, regional manager of Valvoline China.
Attending the signing were James J. O'Brien, president, The Valvoline Company; Steven M. Chapman, vice president, Southeast Asia and China, Cummins Engine Company Inc.; Richard Tan, general manager of distribution, East Asia, Cummins Engine (Beijing) Company Ltd.; Liu Xiaoxing, deputy general manager, Cummins Engine (China) Investment Company Ltd.; Michael J. Porter, managing director of Valvoline Australia/vice president, Asia Pacific; and Dempsey.
Valvoline's PCMO(R), Pyroil(R), Eagle One(R), Zerex(R) and motorcycle products are not part of this joint venture and will continue to be sold through Valvoline's existing and expanding distribution network in China.
The Valvoline Company, a division of Ashland Inc., has been serving American motorists longer than any other motor oil company and is a leading innovator and supplier of quality, high-performing automotive and industrial products in more than 140 countries. Best known for its lubricants, Valvoline also markets Eagle One appearance products, Zerex antifreeze, SynPower Performance Products and Pyroil automotive chemicals. The company also has a stake in the growing quick-lube market with its Valvoline Instant Oil Change unit. Valvoline is a member of the Ashland Inc. family of companies. For more information, visit the company's Web site at www.valvoline.com.
Cummins Engine Co. Inc. is the world's largest producer of diesel engines above 200 horsepower. Based in Columbus, Ind., the company is also a leading manufacturer of alternative fuel engines, diesel engine components, service products and power systems. Cummins provides products and services for customers in markets worldwide for engines, power generation and filtration. In 1999, Cummins reported sales of $6.6 billion. For more information, visit the company's Web site at www.cummins.com.