Hyundai Cummins completes $100-mn earthmover engine factory

By admin June 26, 2014 4:25 am IST

 Hyundai Cummins Engine Company (HCEC), a joint venture company between Hyundai Heavy Industries (HHI) and Cummins, has completed a 78,045 sq. m. engine factory for earthmovers in Daegu, South Korea. In September 2012, HHI and Cummins closed an agreement to establish the engine factory capable of producing 50,000 diesel engines each year with an investment of KRW 100 billion ($ 100 million).

“Hyundai Cummins Engine Company aims to achieve annual sales of $ 500 million by 2020, and is expected to create about 3,700 direct and indirect jobs in the region by 2020. The establishment of the joint engine factory will give Hyundai Heavy Industries’ Construction Equipment Division a stable supply of high-quality engines that are essential for improving the performance and quality of its construction equipment,” the company said issuing a statement. Speaking at the ceremony, Lee Jai-seong, Chairman and CEO of HHI said, “It is our belief that when HCEC engine factory goes into operation, it will play an active role in galvanising the local economy.”