Cummins Inc. and China's Shaanxi Automobile Group Company Ltd. have signed an agreement to form a 50/50 joint venture company, Xi'an Cummins Engine Co. (XCEC), to produce the Cummins ISM 11-liter heavy-duty engine in Xi'an,
the capital city of western China's Shaanxi Province.
The ISM is one of the flagship engines of Cummins heavy-duty product line. In addition to proven fuel economy and dependability, the ISM meets the toughest emission standards worldwide. The ISM is the ideal power choice for heavy-duty vehicles with gross vehicle weight between 26 and 44 tons – including trucks, long-distance coaches and double-decker buses.
The companies initially will invest $24 million in capital into the joint venture company, which will have access to the most advanced Cummins 11-liter, full-electronic ISM engine platform from 305 to 440 hp. Construction of the plant could begin as soon as the fourth quarter of 2005 and production could start as early as the third quarter of 2006. The market for heavy-duty trucks with payloads greater than 15 tons is expected to be around 200,000 units by 2010. The joint venture's projected production is 50,000 units by 2010.