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Cummins’ Layout in China

Mar 14, 2022 | Global Companies in China | 0 comments

Cummins has entered China for 37 years.

In the 1980s, with the rise of the wave of reform and opening up, my country’s economic development has been accelerating. In this context, my country’s commercial vehicle industry has experienced insufficient production and cannot meet the needs of economic development. In order to expand production capacity and narrow the technology gap, China introduced a large number of foreign truck technologies during the Sixth Five-Year Plan and Seventh Five-Year Plan. Among them, Cummins is the first batch of enterprises to enter China.

Early application cases of Chongqing Cummins engines and generators 2-406x205px
Early application cases of Chongqing Cummins engines and generators 3-406x205px
Early application cases of Chongqing Cummins engines and generators 1-406x205px

On January 25, 1981, as one of the key import projects in the engine field in China’s sixth five-year plan, China National Heavy Duty Truck Group and Cummins formally signed a technology import agreement to license the production of Cummins in Chongqing Automobile Engine Factory, a subsidiary of Sinotruk. 10-50 liters high-horsepower diesel engine, which fills a gap in the field of high-performance high-horsepower diesel engines in China. This cooperation made Cummins the first western diesel engine company to conduct localized production in China, and the Chongqing Automobile Engine Plant became the starting point for Cummins’ localized production in China.

With 19 manufacturing companies in China, Cummins is the largest foreign investor in China’s diesel engine industry
Today, Cummins has invested more than 240 million US dollars in China. As the largest foreign investor in China’s diesel engine industry, Cummins has 19 manufacturing enterprises in China, producing engines, turbochargers, filters, and emission treatment systems. , fuel systems, alternators and generator sets. For China’s commercial vehicle industry, the most well-known Cummins in China is the six engine joint venture factories.

Dongfeng Cummins Plant (joint venture), produces Cummins B, C, L series mechanical and ISDe, ISLe, ISZ series fully electronically controlled diesel engines, and B series natural gas engines with engine displacements of 3.9L, 4.5L, 5.9L, 6.7L, 8.3L, 8.9L, 13L, the power coverage range is 125-545HP.

On November 15, 1986, FAW and Cummins signed the B series diesel engine manufacturing technology license transfer contract.

The cooperation between Dongfeng and Cummins can be said to be very in-depth. As early as 1984, China Second Automobile Group decided to introduce the B/C series medium-horsepower engines (3.9-8.3 liters) that Cummins just launched in 1983. On November 15, 1986, FAW and Cummins signed the B series diesel engine product and manufacturing technology license transfer contract in the Great Hall of the People. On June 30, 1990, the first Cummins B series engine was successfully rolled off the production line at Dongfeng Diesel Engine Plant.

Cummins-Signed-Technology-Transfer-Contract-with-Dongfeng-in-1986

In June 1996, after the expiration of the production technology license agreement for Cummins B series engines, Dongfeng Motor Corporation and Cummins Corporation of the United States established Dongfeng Cummins Engine Co., Ltd. with a 50:50 equity ratio.

Dongfeng and Cummins announced to expand the scope of cooperation-800x459px

On February 22, 2003, Dongfeng Motor Co., Ltd. (referred to as “Dongfeng Motor”) and Cummins announced to expand the scope of cooperation to process the B series diesel engine branch of “Dongfeng Motor” and the engine block and cylinder head solely owned by Cummins. The company is integrated with the Cummins C series diesel engine joint venture production plant (Dongfeng Cummins Engine Co., Ltd.). “Dongfeng Motor” and Cummins will continue to each hold 50% of the shares in the enlarged Dongfeng Cummins Engine Co., Ltd.

In addition to technology introduction, Dongfeng and Cummins are also actively cooperating in research and development. Cummins East Asia R&D Center (hereinafter referred to as East Asia R&D Center) located in Wuhan Zhuankou Economic and Technological Development Zone is a joint venture established by Cummins and Dongfeng Motor Corporation. This is the first domestic joint venture diesel engine research and development institution, and it is also the 17th research and development institution established by Cummins in the world. After the second phase expansion in October 2011, the East Asia R&D Center has become Cummins’ second largest R&D institution in the world after the US technology center. Dongfeng’s existing ISZ13-liter engine is the representative product of this R&D center.

Cummins and Dongfeng Motor Corporation jointly established Cummins East Asia R&D Center-800x459px
Cummins and Sinotruk formally signed the joint venture contract-505x255px

In 1995, Cummins and Sinotruk formally signed the joint venture contract of “Chongqing Cummins Engine Co., Ltd.”.

Chongqing Cummins plant (joint venture), producing heavy-duty high-horsepower engines and generator sets with displacements of 11, 14, 19, 38, and 50 liters, with engine power ranging from 175-2000 horsepower.

Chongqing Cummins Engine Co., Ltd., formerly known as Chongqing Engine Factory, is the starting point for localized production of Cummins in China. As early as January 25, 1981, as one of the key import projects in the engine field in China’s sixth five-year plan, China National Heavy Duty Truck Group and Cummins formally signed a technology import agreement to obtain a license for the Chongqing Automobile Engine Plant, a subsidiary of Sinotruk. Production of Cummins 10-50 liters high horsepower diesel engine.

In 1995, Cummins and China National Heavy Duty Truck Group officially signed a joint venture contract for “Chongqing Cummins Engine Co., Ltd.” in Beijing. The plant subsequently introduced heavy-duty high-horsepower engines and generator sets of multiple displacements.

Xi’an Cummins plant (joint venture), mainly produces ISM11, QSM11 series fully electronically controlled diesel engines. The displacement is 10.8 liters, and the power range covers 250-440 horsepower. Meet the National IV/V (Euro IV/Euro V) emission regulations and the third stage emission regulations for off-highway use. Products are widely used in heavy trucks, medium and high-grade passenger cars, construction machinery, generator sets, marine power and other power equipment.

On August 8, 2007, Xi’an Cummins Engine Co., Ltd. officially put into operation Cummins ISM11 liter engine.

Xi'an Cummins Engine Co., Ltd. officially put into operation Cummins ISM11 liter engine-505x255px

Xi’an Cummins Engine Co., Ltd. is a heavy-duty diesel engine manufacturer jointly established by Cummins and Shaanxi Automobile in a ratio of 50:50. It is the only production base of Cummins’ 11-liter heavy-duty engine outside North America.

Beijing Foton Cummins Engine Joint Venture was formally established-800x400px

Beijing Foton Cummins Plant (joint venture), products include Cummins F-series 2.8-liter and 3.8-liter light-duty, F-series 4.5-liter medium-duty, and G-series 11-liter, 12-liter and X-series 12-liter heavy-duty diesel engines.

On October 19, 2006, Cummins and Beiqi Foton formally signed the joint venture contract of “Beijing Foton Cummins Engine Co., Ltd.” at the Diaoyutai State Guesthouse in Beijing. liter and 3.8-liter inline four-cylinder high-pressure direct-injection light-duty diesels.

On March 26, 2008, Beijing Foton Cummins Engine Joint Venture was formally established

In 2010, Foton Aoling CTX light truck equipped with Cummins ISF 3.8-liter light engine was launched nationwide; Foton Omak C280 equipped with Cummins ISF 2.8-liter light engine was launched globally.

On June 7, 2014, the global launch ceremony of Foton Daimler’s Auman GTL super version was held in Beijing. The press conference was held at the Foton Cummins engine plant, which also marked that the Cummins ISG heavy-duty engine has also achieved mass production simultaneously.

In March 2017, the X12 landed in the Chinese market and was the first to be assembled on the high-end models of Auman EST and EST-A, which can meet the emission standards of China V and Euro VI.

The Guangxi Cummins plant (joint venture), which produces 9.3-liter and 7-liter diesel engines, is one of the largest non-road engine production bases in China.

Cummins (China) Investment Co., Ltd. and Guangxi Liugong Machinery Co., Ltd. jointly established an exclusive diesel engine manufacturer for construction machinery

Guangxi Cummins Industrial Power Co., Ltd. is a 50:50 joint venture between Cummins (China) Investment Co., Ltd. and Guangxi Liugong Machinery Co., Ltd. to manufacture diesel engines exclusively for construction machinery. It was incorporated on June 27, 2012. It is located in Liuzhou City, Guangxi Zhuang Autonomous Region.

Guangxi Cummins engine production base was completed and put into production-800x400px

In 2013, the Guangxi Cummins engine production base was completed and put into production—the first Cummins L9.3-liter engine was successfully rolled off the production line.

JAC and Cummins formally signed an agreement to establish a joint venture engine company-800x400px

On May 11, 2018, JAC and Cummins formally signed an agreement to establish a joint venture engine company.

On May 11, 2018, JAC and Cummins formally signed an agreement to establish JAC Cummins Engine Co., Ltd. (subject to the name approved by the government), and Navistar officially withdrew from the JAC Navistar joint venture and placed it in JAC Navistar. The 50% stake held by the joint venture was transferred to Cummins. The current joint venture shareholding change is still subject to relevant government approvals. The parties will start the actual operation of the new joint venture after all government approvals have been completed.

 

A large number of parts companies have settled in China, and Cummins has built a complete engine supporting industry.

On October 27, 2010, Wuxi Cummins Turbo Technology Co., Ltd. ushered in the 5 millionth supercharger off the assembly line.

In addition to the above-mentioned five joint venture engine plants, Cummins has several parts plants in China. For example, Shanghai Filtration System Factory, Shanghai Fleet Processing Factory (joint venture), Wuxi Turbocharger Technology Factory (joint venture), Wuxi Vannevelt Factory (joint venture), Wuhan Fuel System Factory, Beijing Emission Treatment System Factory, Cummins (Xiangfan) ) Machining Co., Ltd., Coors Lubricants Shanghai (joint venture).

Cummins turbocharger factory-800x400px
Cummins fuel system factory settled in Wuhan-800x400px

In 2008, Cummins fuel system factory settled in Wuhan.

In terms of generator sets, Cummins has a total of 4 enterprises in China, namely Wuhan Genset Factory, Wuxi Alternator Factory, Xiangyang Cummins Power Technology, and Shanghai Cummins Jardine.

Among them, the Fleet Processing Plant, turbocharger plant and after-treatment system under Cummins occupy a large market share in China’s commercial vehicle industry.

After more than 30 years of development, Cummins has integrated into the Chinese engine industry, and China has become its largest overseas market.

According to the first cooperation between Cummins and Sinotruk in 1981, Cummins has spent 37 years in China. Through in-depth cooperation with many domestic commercial vehicle giants, Cummins has become an integral part of China’s engine industry, and has made its own contribution to the modernization of China’s engine industry through joint venture/sole proprietorship production and technology transfer.

China has also become Cummins’ largest overseas market. In the past 2017, Cummins’ sales, engine shipments and exports in China also set historical records. Among them, the sales amounted to 5.56 billion US dollars; the total engine shipments in China reached 510,000 units, a year-on-year increase of 32%.

Cummins is in China-800x459
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