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Hyundai and Cummins announce joint venture partnership to build MidRange engines in South Korea

Hyundai Cummins Engine Company established to manufacture 150 hp to 300 hp engines for construction and industrial equipment

Hyundai and Cummins announce joint venture partnership to build MidRange engines in South Korea

Hyundai Heavy Industries Co., Ltd. and Cummins Inc. have announced a 50/50 joint venture partnership to manufacture MidRange engines in Korea extending from 150 hp to 300 hp (112-224 kW) output for application in a wide range of Hyundai construction and industrial equipment.

The launch of the Hyundai Cummins Engine Company (HCEC) joint venture took place in Ulsan, Korea, with a ceremonial co-signing of the agreement by Byeong-Ku Choe, Chief Operating Officer and President – Hyundai Construction Equipment Division, and Rich Freeland, Cummins Vice President and President – Engine Business.

The HCEC joint venture operation will be located in the city of Daegu, Korea, with engine manufacturing to commence in 2014. The new facility will have a capacity in place to build over 50,000 engines per year at full production.

HCEC will supply engines spanning the 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 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 Vice President 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, Chief Operating Officer 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.

"We are very excited at the opportunities the joint venture will realize as we strive together in partnership to achieve mutual success."

The HCEC operation will be equipped with a state-of-the-art engine production line and highly advanced test cells. Cost-effective manufacturing procedures will be applied at HCEC, following common practices utilized across Cummins global network of MidRange engine manufacturing facilities. Combined with Hyundai engineering and quality expertise, this will ensure world-class manufacturing standards at the new plant.

MidRange Engine Manufacture Engines manufactured at the HCEC facility will be based on the proven Cummins B, C and L MidRange platforms meeting emission levels equivalent to U.S. Environmental Protection Agency (EPA) Tier 2 and Tier 3 off-highway regulations, either already in place or set to be introduced in many rapidly developing countries.

Cummins Tier 2 and Tier 3 engines have set the highest performance standards in the industry by achieving unsurpassed levels of in-service reliability and durability, proven under the toughest operating conditions around the world.

Built stronger to last longer, Cummins MidRange products feature advanced combustion technology at the heart of the engine to achieve high power density and enhanced equipment productivity for the lowest possible fuel consumption. This class-leading technology comes with the added benefit of long service intervals and very high tolerance for poor fuel quality.

Having the foundation of a strong HCEC partnership in place will provide a further impetus for Hyundai and Cummins to accelerate other ongoing areas of engine supply cooperation beyond the joint venture product line, including Cummins next generation of EPA Tier 4 Final and EU Stage IV low-emissions engines for regulations taking effect Jan. 1, 2014 in North America and Europe.