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Liugong localized production joint venture with Cummins Engine

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October 20, 2011, Guangxi Liuzhou (Reuters) - Cummins Inc. (NYSE: CMI) and the Guangxi Liugong Machinery Co., Ltd. (Shenzhen-listed company code: 000528, hereinafter referred to as "Guangxi Liugong") jointly announced will establish a joint venture in southern China, co-production of horsepower engine. The new engine joint venture will be located in Liuzhou, Guangxi, is expected in 2013, the initial planning capacity of up to 50,000 units, according to market demand in the future will further enhance the production capacity.

Wang Xiaohua, chairman of Guangxi Liugong with Cummins Group Vice President and chairman of China Cao Side (Steve Chapman) as representatives of both parties in the Liuzhou joint venture agreement was signed. Under the agreement, both parties will jointly produce the world's leading horsepower Cummins engine series, meet the non-road second (Tier 2), third (Tier 3) phase of emission standards.
Horsepower Cummins engine in China will be fully realized in the localization of production, and tailored to meet the specific needs of the construction machinery market power products to meet the Liugong and other Chinese OEMs demand. Earlier, in the central-horsepower Cummins engine series focused on the automotive market, investment, construction machinery in horsepower engine with a new investment project, is aCummins engine production capacity in China, added, will better meet the market outside the car the horsepower of Cummins products. Cummins used in construction machinery industry-leading horsepower engine with excellent quality, through local production, close to the Chinese customers for secondary development and optimization, for the Chinese construction machinery industry to provide high performance and reliability of engine power, the overall benefit of industry enhance the level of development.
"Liugong joint venture with Cummins, for both the field of construction machinery in China laid the foundation for major expansion in China has become the world's largest construction machinery market, its strong market demand will continue to promote China's rise in the coming years to maintain the momentum. "Rambo, president and COO of Cummins Man (Tom Linebarger) of the joint venture with confidence. "I am very pleased that we can in the long-term collaboration with Liugong to deepen cooperation on the basis of. Liugong is the most respected leader in China's manufacturing industry is one of rapid development in recent years, has made outstanding achievements in the future will continue to rapidly development momentum. "Rambo text Liugong president spoke highly of the cooperation with Cummins:" Liugong with Cummins high degree of consensus on many ideas. Liugong is committed to excellent product quality and service to meet customer demand, full pursuit of excellence These will be valuable to help us achieve a new joint venture company established goals, succeed. "
Currently, horsepower Cummins engine has been successful in supporting Liugong equipment, widely used in domestic and international markets. Liuzhou is a new joint venture will be the end result to be customer-oriented engine design, the full realization of local production to meet the needs of China's construction machinery customers. Adhere to the market demand to provide suitable products, is the best way to seize market opportunities, and opportunities to promote, through the engine tailored to meet specific economic and operational requirements to achieve. Joint venture engine users not only to meet Chinese OEM demand for the domestic market will also become China's construction machinery enterprises to explore overseas market weapon.
"Liugong successful implementation of joint venture with Cummins matter of course, we both have 10 years of successful experience of cooperation, are delighted to strengthen the tie with Cummins become closer partners," Vice Chairman of Guangxi Liugong President Zeng Guang An said. "Combining our professional engineering machinery Cummins engine applications world-class experience and the ability to combine excellent engine, the new joint venture will provide protection to the success of the joint venture operation in early 2012, initial spare parts before the engine auxiliary equipment, which is conducive to the production machine to 2013, a smooth transition.

News from ET Power Machinery Co.,Ltd
Edited by Siren

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