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Hyundai and Cummins Joint Venture to Build MidRange Engines

Contract of JV between Hyundai Heavy Industries Co., Ltd. and Cummins Inc. Contract of JV between Hyundai Heavy Industries Co., Ltd. and Cummins Inc..

Hyundai Heavy Industries Co., Ltd. and Cummins Inc. announced a 50/50 joint venture for production in Korea the MidRange engines with the output from 150 hp to 300 hp (112-224 kW). These engines will be used for application in a wide range of Hyundai construction and industrial equipment. The launch of the joint venture Hyundai Cummins Engine Company (HCEC) was held in Ulsan, Korea and marked with a ceremonial agreement co-signing by Hyundai Construction Equipment Division Chief Operating Officer and President - Byeong-Ku Choe and Cummins Engine Business Vice President and President - Rich Freeland.


Hyundai Cummins Engine Company will be located in Daegu, Korea. Engine production is planned to start in 2014, new facility capacity should be more than 50,000 units per year. HCEC 5.9-liter to 8.9-liter displacement engine range will be used for Hyundai excavators, wheel loaders and industrial equipment, manufactured in Ulsan and other Hyundai factories worldwide. In addition, joint venture engines will power the equipment for high growth markets such as Russia, Africa, the Middle East and Southeast Asia.


According to Mr. Freeland, forming a joint venture with the well-known global construction equipment manufacturer Hyundai is a great success for Cummins, and an important step for formation working relationship with Hyundai to a much closer level. Over the years, Hyundai was an important customer of Cummins engines, and now, two companies can share respective expertise for leading positions in the world markets.

The Chief Operating Officer and President of Hyundai Construction Equipment Division Byeong-Ku Choe, said “Cummins is one of the major high quality engine suppliers for Hyundai equipment with capability to improve the performance of Hyundai products. Thus, new joint venture is a completely natural result of the development of longstanding cooperation.”


The HCEC facilities will be equipped with the state-of-the-art engine production line and test cells. New production will feature all cost-effective manufacturing procedures applying for Cummins MidRange engine global network manufacturing facilities. Engineering expertise and excellent quality of products of the two companies ensure HCEC engines world-class manufacturing standards.


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