Cummins Receives Bus Engine Orders from China Transit Agencies

Cummins recently received an order of 1,000 Euro IV diesel engines from Beijing Public Transport Holdings Ltd. (BPT), and 900 Euro III diesel engines from Hangzhou Public Transport Corporation (HZPT). Hangzhou is the capital of Zhejiang Province in eastern China.

BPT’s most recent order comes in addition to its purchase of 1,400 Cummins Euro IV diesels and 250 Cummins Westport (a joint venture of Cummins and Westport Innovations) Euro III natural gas engines in the second quarter of 2007. With this new order, Cummins and Cummins Westport, will power more than 14,000 BPT buses - over half of the transit agency’s fleet.

The order of 900 Euro III diesel engines from HZPT marks an important breakthrough for Cummins in the large urban transit market in China’s booming Eastern region, as the city has increased its commitment to the environment in recent years.

"Our strategy in China's transit market has long been to provide the most current technology that the market will bear," said Wang Hongjie, General Manager - Cummins East Asia Engine Business. “As China moves to more stringent emission standards, we are ready with proven products to meet Chinese customers’ expectations on engine performance and dependability.”

China has implemented Euro III emission standards countrywide this year, and plans to move to Euro IV by 2010. Beijing will move to Euro IV in 2008 in time for the Summer Olympics. Cummins is the largest supplier to China's nationwide Euro III/IV diesel bus engine market and is the largest supplier in the country's natural gas transit bus engine sector.

Cummins is the largest foreign investor in the Chinese diesel engine industry. The company's ties to the country date back to 1975 when then-CEO J. Irwin Miller led the first Cummins delegation to Beijing, making him one of the first American business leaders to seek opportunities in China.

Cummins began licensing its engine technology in China in 1981 and formed its first joint venture in the country in 1995. Today, Cummins operates 21 facilities in China with more than 5,400 staff, 14 manufacturing plants, 12 distributor locations and a regional R&D center.

Consolidated and unconsolidated sales in China were each in the range of $750 million during the most recent reported 12 months, so total sales in which Cummins participates, independently and with its partners, exceeded $1.5 billion

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