LAS VEGAS (September 24, 2012) -
Cummins Inc. (NYSE: CMI) announced plans at MINExpo to increase high-horsepower engine remanufacturing capacity by 100 percent in order to meet demand for a rapidly expanding population of mining equipment powered by the popular QSK and K Series engines. Cummins Distribution Business will double total high-horsepower rebuild capacity to around 7,000 units per year by 2016, compared with the 2011 capacity of around 3,500 units per year, covering mining and other high-horsepower applications.
Cummins engine rebuild process ensures that the equipment operator receives a rebuilt engine with “as-new” standards of reliability and performance. Spanning the 500 hp-to-3500 hp range (373-2610 kW), Cummins QSK and K Series engines are designed with inherent capability for multiple-life operation, often capable of achieving as many as four rebuilds.
A global network of highly specialized rebuild facilities are located in areas aligned with high populations of Cummins-powered haul trucks, loaders, excavators, drill rigs and other mining equipment. The investment program will establish a number of additional engine rebuild facilities in new locations, as well as expand many of the existing facilities. This follows a major expansion in capacity in progress since 2008, when annual capacity stood at 1,600 rebuild units compared with 3,500 units today.
By 2016, rebuild capability will be available at some 40 locations, including Cummins Master Rebuild Center (MRC) regional hubs and localized Cummins Rebuild Workshops, with a total site space of around 1 million square feet (92,900 square meters).
“We are doubling our current high-horsepower remanufacturing capacity to 7,000 units per year by 2016 to stay ahead of customer demand for engine rebuilds, due to a significant increase in the population of Cummins-powered mining equipment,” said Pamela Carter, President – Cummins Distribution Business.
“The certified engine rebuild process is a key pillar of Cummins customer support, helping operators reduce the total life-cycle cost of their engines and achieve the lowest possible cost per ton of material extracted,” added Carter.
The capacity expansion will be a phased ramp-up over the next four years, building on the capabilities, tools and processes already in place. The program is intended to serve mining customers better, as well as improve Cummins return on investment and facility utilization as the rebuild volume increases.
Certified Engine Rebuild.
Cummins Master Rebuild Centers work to a 12-month rolling forecast, using data such as engine volume in-service, engine type, mine site location, engine operating hours and projected rebuild date. Based on duty-cycle analysis, the Cummins distributor will work closely with the equipment operator to schedule the projected engine rebuild. This approach helps the customer to plan ahead and minimize equipment downtime, with the option of using readily available rebuilt “swing support” engines if required.
MRCs are equipped to provide a certified rebuild or tailor a rebuild to meet customer needs. The certified rebuild involves a 600-step process involving teardown, cleaning, evaluation, component and engine assembly, dyno testing, painting and final inspection. Remanufacturing quality standards at MRCs are equivalent to “factory” standards, as applied to manufacturing a new Cummins engine. Remanufactured high-horsepower engines are upgraded with the latest product improvements as they become available, in the same way as a new engine built at the factory.
About Cummins Inc.
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana (USA), Cummins employs approximately 44,000 people worldwide and serves customers in approximately 190 countries and territories through a network of more than 600 company-owned and independent distributor locations. Cummins earned $1.85 billion on sales of $18.0 billion in 2011. Press releases can be found on the Web at cummins.com or cumminsengines.com. Follow Cummins on Twitter at http://twitter.com/cumminsengines and on YouTube at http://youtube.com/cumminsengines.