May 13 2014
Hyundai Cummins Engine Company (HCEC), a joint venture company between Hyundai Heavy Industries (HHI), the world’s largest shipbuilder, and Cummins, the world’s largest construction equipment engine maker, announced today that it completed a 78,045m2 engine factory for earthmovers in Daegu, South Korea.
Aerial View of Hyundai Cummins Engine Company
In September 2012, HHI and Cummins closed an agreement to establish the engine factory capable of producing 50,000 diesel engines each year with an investment of KRW 100 billion.
The completion ceremony was attended by Mr. Dave Crampton, Vice President of Heavy Duty, Mid Range and Light Duty Engine Business of Cummins; Mr. Kim Bum-il, Mayor of Daegu Metropolitan City; Mr. Choi Byung-rok, Commissioner of Daegu-Gyungbuk Free Economic Zone; Mr. Lee Jai-seong, Chairman and CEO of HHI and 400 other guests.
Hyundai Cummins Engine Company aims to achieve annual sales of USD 500 million by 2020, and is expected to create about 3,700 direct and indirect jobs in the region by 2020. The establishment of the joint engine factory will give Hyundai Heavy Industries’ Construction Equipment Division a stable supply of high-quality engines that are essential for improving the performance and quality of its construction equipment.
In the ceremony, Mr. Lee Jai-seong said, “I would like to extend my sincerest appreciation to Daegu Metropolitan City and its citizen for their strong support to make today’s inauguration ceremony possible. It is our belief that when HCEC engine factory goes into operation, it will play an active role in galvanizing the local economy.”