First Engines Supplied Ready To Install In Excavators And Wheel Loaders
DAEGU, South Korea (May 15, 2014) – Cummins Inc. (NYSE: CMI) today announced that engine production is underway at the Hyundai Cummins Engine Co. (HCEC) joint-venture facility located in the city of Daegu, South Korea. The first engines built at HCEC are being supplied to the Hyundai construction equipment facility in Ulsan, Korea, ready for installation in excavators and wheel loaders. The new HCEC facility has the capacity in place to ramp up production to over 50,000 MidRange engines per year, spanning a broad power range from 133 hp to 365 hp (99-272 kW).
“Production start-up at the new HCEC facility takes place just 19 months after the initial ground-breaking on site in November 2012, representing a remarkably short completion time to establish a world-class engine manufacturing operation,” said Dave Crompton, Vice President and General Manager – Cummins Engine Business.
“This achievement was made possible by the joint-venture partners – Hyundai Heavy Industries and Cummins – combining their respective areas of manufacturing expertise. I am very pleased that we are working in close partnership with such a highly respected company as Hyundai, and now have a major engine manufacturing presence in Korea ready to power construction and industrial equipment.” added Crompton.
Rapid implementation of the planning and construction of the HCEC facility was enabled due to the fast-track support provided by the city of Daegu and the Daegu-Gyeongbuk Free Economic Zone (DGFEZ) agency. The HCEC site is located in a sector of the DGFEZ development area intended for high-technology manufacturing.
The MidRange engines manufactured by HCEC include a mechanically controlled 5.9-liter and 8.3-liter series and an electronically controlled 6.7-liter and 8.9-liter series. They are configured to provide optimized integration and enhanced performance in earth-moving equipment and industrial applications. The HCEC-built engines come with a well-proven pedigree, as they are derived from Cummins B, C and L base engine platforms. Millions of these Cummins engines are operating throughout the world, and have earned an enviable reputation for in-service reliability and durability working in the toughest applications and the most severe duty cycles.
By starting with a clean-sheet design approach, the HCEC facility incorporates state-of-the-art technology throughout the engine manufacturing, painting and testing processes. As a result, the factory sets new standards for energy efficiency and eco-friendly operation.
During engine hot testing, a regenerative system is used to capture waste energy, enabling up to 700,000 kilowatt-hours per year to be saved as production ramps-up. The use of a water-based engine painting system also makes an important contribution to achieving more eco-friendly manufacturing.
The plant sets new standards in terms of employee comfort and safety, with the latest ergonomic designs for every work station and extensive use made of clean manufacturing techniques to create a better working environment.
A Long-Standing Partnership In Power
The HCEC joint-venture partnership builds on the strong foundations established by a long-standing business relationship between Hyundai and Cummins, extending back over 20 years. Today, Hyundai utilizes Cummins power for a wide range of equipment, varying in size from a compact wheel loader with the B3.9 engine with 3.9-liter displacement, all the way up to the largest excavator powered by the QSK23 engine with 23-liters.
The latest generation of Hyundai machines currently being introduced to North America and Europe feature Cummins near-zero emissions engine and aftertreatment system, meeting U.S. Environmental Protection Agency (EPA) Tier 4 Final and European Union (EU) Stage IV regulations.
Hyundai Cummins Engine Company (HCEC) is a 50/50 joint-venture between Hyundai Heavy Industries Co., Ltd. and Cummins Inc. announced in September 2012. HCEC manufactures MidRange engines for Hyundai equipment intended for operation in Korea, China, Southeast Asia, Russia, the Middle-East and Africa. The HCEC production facility in Daegu, South Korea occupies a site area of 78,000 square meters.
About Cummins Inc.
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins currently employs approximately 48,000 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and approximately 6,500 dealer locations. Cummins earned $1.48 billion on sales of $17.3 billion in 2013. Press releases can be found on the Web at cummins.com or cumminsengines.com. Follow Cummins on Twitter at twitter.com/cumminsengines and on YouTube at youtube.com/cumminsengines.