Hyundai Cummins Engine Co., a joint venture construction equipment engine company between Hyundai Heavy Industries and Cummins, last week broke ground on a new manufacturing plant in Daegu, South Korea.
The ground-breaking ceremony, held at Techopolis in Daegu's Free Economic Zone, was attended by Norbert Nusterer, Cummins vice president of new and recon parts; Lee Jai-seong, Hyundai Heavy Industries president and CEO; and Kim Bum-il, mayor of Daegu.
The joint venture agreement, announced in September, includes a U.S. $40 million investment from both Hyundai Heavy and Cummins, to produce engines for earthmoving equipment. The Ulsan, South Korea-based company aims to become a Top 3 earthmoving equipment maker with global annual sales of KRW 10 trillion (about U.S. $9.2 billion) by 2016.
The factory will start production in May 2014 with an annual production capacity of 50,000 engines and is expected to create about 5,300 jobs in the region by 2022.