Hyundai | Hyundai Heavy Industries & Cummins Set Up Earthmover Engine Joint Venture

Ulsan, Korea - September 7

Hyundai Heavy Industries (HHI), the world’s largest shipbuilder and a leading construction equipment maker, announced today that it signed an agreement with Cummins, the world’s largest construction equipment engine maker to establish an engine factory for earthmovers in Daegu.

Hyundai Heavy and Cummins each invested USD 33 million for the joint venture, named Hyundai Cummins Engine Company. The factory will start production from 2014 with an annual production capacity of 50,000 engines.

The signing ceremony, held at Hyundai Heavy’s headquarters in Ulsan, Korea, was attended by Mr. Rich Freeland, president of Cummins, Mr. Choe Byeong-ku, COO of Hyundai Heavy’s Construction Equipment Division, and Mr. Kim Jeong-hwan, COO of Hyundai Heavy’s Engine & Machinery Division.

The establishment of the joint engine factory will give HHI’s Construction Equipment Division a stable supply of high-quality engines.

The Ulsan, South Korea-based company set global annual sales target for construction equipment at USD 4.2 billion for this year, a 14% increase from USD 3.7 billion last year.

Starting from KRW 320 billion (USD 282 million) annual sales in 2014, Hyundai Cummins Engine Company targets to achieve aggregated sales of KRW 4 trillion (USD 3.53 billion), and create about 5,300 jobs in the region by 2022.

"We believe Hyundai Cummins Engine Company will play a critical role for expanding our global market presence. Our goal is to become a Top 3 manufacturer of earthmovers by 2016 with annual sales of USD 9.1 billion" said Mr. Choe Byeong-ku.

About Hyundai Heavy Industries Europe

Hyundai Heavy Industries Europe (HHIE) is a widely recognized leader in the European construction equipment market. Through highly advanced factory automation, a zero-tolerance quality control inspection system and innovative engineering we offer a wide range of construction equipment to satisfy the demands of our customers. We manufacture over 96 models of heavy equipment including hydraulic excavators, wheel loaders, industrial forklifts as well as skid steer loaders. HHIE markets its products through a qualified network of over 100 dealers in 30 countries. For additional information, please visit http://www.hyundai.eu.