Hyundai Cummins Engine Company, a joint venture construction equipment engine company set up between Hyundai Heavy Industries and Cummins, broke ground today in Daegu, South Korea.
The ground breaking ceremony held at Techopolis in Daegu's Free Economic Zone was attended by Mr. Norbert Nusterer, vice president of new and recon parts at Cummins; Mr. Lee Jai-seong, president and CEO of Hyundai Heavy Industries; Mr. Kim Bum-il, Mayor of Daegu, and other guests.
In September this year, Hyundai Heavy, the world's largest shipbuilder and a leading construction equipment maker and Cummins, the world's largest construction equipment engine maker, signed an agreement to each invest USD 40 million for the joint venture.
The factory will start production from May 2014 with an annual production capacity of 50,000 engines.
The establishment of the joint earthmover engine factory will give Hyundai Heavy a stable supply of high-quality engines. The Ulsan, South Korea-based company aims to become a Top 3 earthmover maker with global annual sales of KRW 10 trillion (USD 9.2 billion) by 2016.
Hyundai Cummins Engine Company is expected to create about 5,300 jobs in the region by 2022.