Cummins Inc. last week signed a joint-venture agreement to establish a new company, Cummins West Africa, in partnership with Nigerian-based company A.G. Leventis. The new Cummins West Africa operation in Lagos will manufacture power generation systems with up to 1,000-kVA output, supported by a network of service branches strategically located across the country.
Cummins West Africa will meet a growing demand in Nigeria for reliable, efficient power generation, the company said. With the formation of Cummins West Africa, Cummins continues a diversified global business strategy focused on entering high-potential emerging markets at an early stage. Cummins also has established manufacturing operations in countries such as China and India.
“With strong economic growth underway, the business foundations are in place for Cummins West Africa to succeed,” said Robert Neitzke, Cummins director of business development and board member of Cummins West Africa. “Working with A.G. Leventis, we have the right partner at the right time to develop significant new business opportunities. They are one of the most respected companies in Nigeria with a long experience in providing power generation products.”
“Nigeria is the most populous country in Africa, is rich in natural resources and is the only country in Africa to have paid off all foreign debt,” said Andreas Loucas, group general manager of A.G. Leventis, explaining the business rationale for the joint-venture partnership. “With these sound fundamentals in place, economic growth is underway and driving demand for prime power generation.”
By utilizing manufacturing processes and training programs in common with those of the United States and United Kingdom, Cummins West Africa will produce generator sets to the same quality levels. At maturity, the Cummins West Africa facility in Lagos is expected to be one of the largest and most advanced genset manufacturing operations in Africa.