Hyundai and Cummins form JV to build MidRange engines in South Korea

10 September 2012

Hyundai Heavy Industries Co., Ltd. and Cummins Inc. have formed a 50/50 joint venture partnership to manufacture MidRange engines in Korea extending from 150 hp to 300 hp (112-224 kW) output for application in a wide range of Hyundai construction and industrial equipment.

The launch of the Hyundai Cummins Engine Company (HCEC) joint venture took place in Ulsan, Korea. The HCEC joint venture operation will be located in the city of Daegu, Korea, with engine manufacturing to commence in 2014. The new facility will have a capacity in place to build more than 50,000 engines per year at full production.

HCEC will supply engines spanning the MidRange 5.9-liter to 8.9-liter displacement range for Hyundai excavators, wheel loaders and industrial equipment built in Ulsan and other locations worldwide. The joint venture engines will power Hyundai equipment in markets with high growth potential such as Russia, the Middle East, Africa and Southeast Asia.

The HCEC operation will be equipped with an advanced engine production line and highly advanced test cells. Cost-effective manufacturing procedures will be applied at HCEC, following common practices used across Cummins global network of MidRange engine manufacturing facilities. Combined with Hyundai engineering and quality expertise, this will ensure world-class manufacturing standards at the new plant.

Engines manufactured at the HCEC facility will be based on the Cummins B, C and L MidRange platforms meeting emission levels equivalent to US Environmental Protection Agency (EPA) Tier 2 and Tier 3 off-highway regulations, either already in place or set to be introduced in many rapidly developing countries.