Cummins renew the joint venture with Chongqing Cummins

On May 17, 2022, Cummins and Chongqing Electromechanical Co., Ltd. jointly announced the extension of their joint venture cooperation. According to the newly revised and restated terms, the joint venture cooperation between the two parties will be extended to 2040. During this period, the parent companies will further work together to promote the sustainable development of the joint venture company, Chongqing Cummins Engine Co., Ltd.

As Cummins’ first engine joint venture in China, Chongqing Cummins has played a vital role in meeting the diverse needs of China’s high-horsepower market. Based on the new contract terms, Chongqing Cummins will introduce the QSK60 engine production platform to further expand its product matrix. The acclaimed QSK60 is one of Cummins’ best-known high-horsepower engine products on the global market. This series of products is widely praised by Chinese customers for its excellent quality, high power density, low carbon footprint, and reliable performance, and is unique in power applications, providing power support for the booming data center industry. The domestic production of QSK60 will effectively shorten the delivery time, understand customer needs more forward-looking, and better provide customers with customized support throughout the life cycle.

Norbert Nusterer, vice president and president of the powertrain business at Cummins, said: “Chongqing Cummins’ remarkable achievements over the past 27 years are very exciting. Customer success is the key to our business. Today, the demand for supply chain efficiency is increasing. Increasingly, it is more and more urgent to meet the needs of customers with agility and efficiency. At this time, introducing our most competitive product platform into China to realize localized production will inject new energy into the sustainable development of Chongqing Cummins, and provide our customers with new energy. Create unique value.”

In parallel with the introduction of new product platforms, new manufacturing and engineering capabilities are being built. This will undoubtedly give Chongqing Cummins stronger competitiveness.
Nathan Stoner, vice president of Cummins in charge of business in China, said: “Localization and win-win partnerships are the key to Cummins’ success in China. In the face of tougher competition and market dynamics, we and our partners and other stakeholders have a shared vision and mutual trust, which will ensure our joint venture has the opportunity to gain insight into customer needs and gain a head start to capture more market opportunities.”

Zhang Fulun, chairman of Chongqing Electromechanical, said: “The cooperation between Chongqing Electromechanical and Cummins has set an example for the industry. Facing the future, the signing of this joint venture cooperation agreement just injects a ‘strengthening shot’ into the development of Chongqing Cummins. We will cooperate with Cummins Sincerely cooperate and work together, we will accelerate the development of Chongqing Cummins and jointly embrace a bright future.”

Founded in 1995, Chongqing Cummins is the only high-horsepower engine production base for Cummins in China. The application markets it serves include electric power, marine machinery, and construction machinery. In 2015, Chongqing Cummins announced the BFG (Future Development) project to build leading manufacturing and R&D capabilities, and introduced new product platforms to enrich the product array.

About Chongqing CCEC

Chongqing Electromechanical Co., Ltd. was established in July 2007 and is a Hong Kong-listed company. Business development, manufacture and sales of auto parts, electrical machinery and equipment, environmental protection equipment, machine tools, electrical equipment and equipment, communication equipment (excluding receiving and transmitting facilities), computers and their components, non-ferrous metal smelting and rolling products , instrumentation, office machinery products, wind power equipment; equipment manufacturing, real estate development, financial investment; import and export trade, high-tech consulting services.