Cummins and Chongqing Electromechanical renew the joint venture agreement to jointly promote the future development of 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 until 2040. During this period, both parties of the parent company 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 terms of the new contract, Chongqing Cummins will introduce the QSK60 engine production platform to further expand its product matrix. The acclaimed QSK60 is one of the most well-known high-horsepower engine products in the global market under Cummins. This series of products is widely praised by Chinese customers for its excellent quality, high power density, low carbon footprint, and reliable performance. It is unique in power applications and provides 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 Nsterer, vice president and president of Cummins Power Systems business, said: "Chongqing Cummins has achieved remarkable achievements in the past 27 years. The success of our customers is the key to our business. Today, the demand for supply chain efficiency is increasing. It is becoming more and more urgent to quickly and efficiently meet customer needs. At this time, introducing our most competitive product platform to China to realize localized production will inject new energy into the sustainable development of Chongqing Cummins and serve our customers. Create unique value."
Simultaneously with the introduction of new product platforms is the establishment of new manufacturing and engineering capabilities. 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. Facing tougher competition and responding to market dynamics, we and our partners and other stakeholders share a common vision and trust each other, which will ensure that our joint venture has the opportunity to deeply understand customer needs and win opportunities to seize more market opportunities."
Zhang Fulun, chairman of Chongqing Machinery and Electric, said: "The cooperation between Chongqing Machinery and Cummins has set an example for the industry. Facing the future, the signing of this joint venture agreement just injects a 'boosting shot' into the development of Chongqing Cummins. We will cooperate with Cummins We will cooperate sincerely and advance hand in hand to accelerate the development of Chongqing Cummins and welcome a bright future together.”
Founded in 1995, Chongqing Cummins is the only high-horsepower engine production base of Cummins in China, serving application markets including electric power, marine machinery, construction machinery, etc. In 2015, Chongqing Cummins announced the BFG (Future Great Development) project to build leading manufacturing and R&D capabilities, introducing new product platforms to enrich the product array.
About Chongqing Electromechanical
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 parts, non-ferrous metal smelting and rolling processing products , instrumentation, office machinery products, wind power generation equipment; equipment manufacturing, real estate development, financial investment; import and export trade, high-tech consulting services.