22 April 2016, 08:30
LiuGong and Cummins have officially announced an expansion on their joint venture investment in the manufacturing of non-road engines at Guangxi Cummins Industrial Power Co., Ltd. (GCIC). LiuGong, a global leader in manufacturing a full line of extreme duty equipment, has contributed to a cash injection of RMB 240 million, an investment equally shared by LiuGong and Cummins. This will go towards key capability building and product & technology enhancements.
As a result of investment expansion, GCIC can now further utilize its production capacities and key advantages, optimize manufacturing efficiency, and lower operational cost by strengthening the cooperation on the supply chain with partner enterprises.
More enhancements will also be made to the whole value chain system, including research and development, manufacturing, quality assurance and marketing after-sales services. This enhancement will further build GCIC’s competitive edge, and create better value for customers.
LiuGong’s Vice President Huang Haibo commented on the investment expansion, “The increase of investment fully embodies both sides’ confidence in the healthy development and bright future of GCIC. As new capital input is coming, GCIC will further exert its win-win advantages.”
The partnership between LiuGong and Cummins was first forged in 2013 to bring GCIC top-level engine technologies to a world-leading machinery plant. This winning combination has brought many third-generation products to market with ease, including L9.3, QSB7 and QSL9.3, with both brand and products receiving a warm reception from customers.
As Euro-III non-road engine standards are being applied nationwide, and its advantages on products and technologies are becoming more obvious, GCIC has also looked at further conquering the assembly market.
Wangning, Cummins’ Vice President and General Manager of China Engine Division JV Business Operation, added, “By utilizing Cummins’ manufacturing capacities, technical reserve and scale advantages, GCIC will provide more competitive products and technologies to LiuGong and other customers, helping them make more breakthroughs in domestic and overseas markets.”
Source: Branding and Communications