Cummins Inc and China's Shaanxi Automobile Group CoLtd have signed an agreement to form a 50/50 joint venture company, Xi'an Cummins Engine Co (XCEC), to produce the Cummins ISM 11-liter heavy-duty engine in Xi'an, the capital city of western China's Shaanxi Province.
The agreement was signed by John Watkins, Cummins vice-president and the head of Cummins operations in China, and Wang Hongjie, vice-chairman of Cummins China Investment Co Ltd, together with Zhang Yupu, chairman of Shaanqi Group, and Nie Xinyong, Ccairman of Shaanxi Heavy-duty Truck Co Ltd, a subsidiary of Shaanqi Group.
The companies initially will invest $24 million in capital into the joint venture company, which will have access to the Cummins 11-liter, full-electronic ISM engine platform from 305 to 440 horsepower. Construction of the plant could begin in fourth quarter 2005, and production could start as early as third quarter 2006.