Cummins (NYSE:CMI) recently received an order of 1,000 Euro IV diesel engines from Beijing Public Transport Holdings Ltd. (BPT), and 900 Euro III diesel engines from Hangzhou Public Transport Corporation (HZPT). Hangzhou is the capital of Zhejiang Province in eastern China.
BPT’s most recent order comes in addition to its purchase of 1,400 Cummins Euro IV diesels and 250 Cummins Westport (a joint venture of Cummins and Westport Innovations) Euro III natural gas engines in the second quarter of 2007. With this new order, Cummins and Cummins Westport, will power more than 14,000 BPT buses – over half of the transit agency’s fleet.
The order of 900 Euro III diesel engines from HZPT marks an important breakthrough for Cummins in the large urban transit market in China’s booming Eastern region, as the city has increased its commitment to the environment in recent years.
"Our strategy in China's transit market has long been to provide the most current technology that the market will bear," said Wang Hongjie, General Manager - Cummins East Asia Engine Business. “As China moves to more stringent emission standards, we are ready with proven products to meet Chinese customers’ expectations on engine performance and dependability.”
China has implemented Euro III emission standards countrywide this year, and plans to move to Euro IV by 2010. Beijing will move to Euro IV in 2008 in time for the Summer Olympics. Cummins is the largest supplier to China's nationwide Euro III/IV diesel bus engine market and is the largest supplier in the country's natural gas transit bus engine sector.
Cummins in China
Cummins is the largest foreign investor in the Chinese diesel engine industry. The Company's ties to the country date back to 1975 when then-CEO J. Irwin Miller led the first Cummins delegation to Beijing, making him one of the first American business leaders to seek opportunities in China.
Cummins began licensing its engine technology in China in 1981 and formed its first joint venture in the country in 1995. Today, Cummins operates 21 facilities in China with more than 5,400 staff, 14 manufacturing plants, 12 distributor locations and a regional R&D center.
Consolidated and unconsolidated sales in China were each in the range of $750 million during the most recent reported 12 months, so total sales in which Cummins participates, independently and with its partners, exceeded $1.5 billion
About Cummins
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $715 million on sales of $11.4 billion in 2006. Press releases can be found on the Web at www.cummins.com.
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company’s actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.
Contacts:
Mark Land, 317-610-2456
Director of Public
Relations
mark.d.land@cummins.com
