They have each invested US$33 million (€25.5 million) for the joint venture, named Hyundai Cummins Engine Company. The factory will start production from 2014 with an annual production capacity of 50,000 engines.
The signing ceremony, held at HHI’s headquarters in Ulsann, South Korea, was attended by Rich Freeland, president of Cummins, Mr. Choe Byeongg-ku, COO of HHI’s construction Equipment Division, and Mr Kim Jeong-hwan, COO of HHI’s engine and machinery Division.
The establishment of the joint engine factory will give HHI’s construction Equipment Division a stable supply of engines.
HHI has set global annual sales target for construction equipment at $4.2 billion (€3.25 billion) for this year, a 14% increase from $3.7 billion (€2.86 billion) last year.
Starting from $282 million (€218 million) annual sales in 2014, Hyundai Cummins Engine Company targets to achieve aggregated sales of $3.53 billion(€2.73 billion), and create about 5,300 jobs in the region by 2022.
“We believe Hyundai Cummins Engine Company will play a critical role for expanding our global market presence. Our goal is to become a Top 3 manufacturer of earthmovers by 2016 with annual sales of $9.1 billion [€7 billion],” said Mr. Choe Byyeong-kuu.
