HHI building diesel engine plant in Daegu with U.S. firmHyundai Heavy Industries broke ground on a diesel engine plant in Daegu yesterday that it is building in conjunction with a leading U.S. engine manufacturer. The plant will be able to produce 50,000 engines a year.
The world’s No. 1 shipbuilder and Indiana-based Cummins made a total $66 million investment that gives each a 50 percent stake. The joint venture is called Hyundai-Cummins Engine. Mass production will begin at the plant in 2014.
Established in 1919, Cummins is the world’s biggest construction equipment engine manufacturer. Its sales hit $18 billion in 2011. HHI said the joint venture will help it secure a steady supply of engines for construction equipment as it is widely expanding its business in this field.
The shipbuilder’s construction equipment unit posted sales of $3.7 billion last year, up 29 percent from 2010. HHI expects the Daegu facility will generate over 5,000 new jobs and 2 trillion won ($1.8 billion) in economic effect.
More in Industry
Are you Taycan to me?
Facebook hit with $6 million penalty for customer data leak
Spinoff to give LG chairman's uncle his own conglomerate
Lotte companies make appointments earlier than usual
Doosan Heavy becomes largest shareholder of Doosan Fuel Cell