Foton Cummins Leveraging Financial Capital


Beijing Foton Cummins Engine Co., Ltd. officially signed the Foton Cummins Syndicated Loan Agreement with China Construction Bank and Minsheng Bank, with total loans of RMB 1.2 billion. This marks the smooth realization of the financing loan for the largest light diesel engine manufacturer in China and will lay the economic foundation for the future sustainable development of Foton Cummins.

Beijing Foton Cummins Engine Co., Ltd. is invested by Beiqi Foton Motor Co., Ltd. and Cummins Co., Ltd. at a ratio of 50:50. The total investment of the project exceeds RMB 2.7 billion, and the designed capacity is an annual output of 400,000 engines. The main product is Cummins' latest A 2.8-liter and 3.8-liter inline four-cylinder high-pressure direct injection light-duty diesel engine featuring high starting point, high performance and low emissions, suitable for light trucks, pickup trucks, SUVs, MPV utility vehicles, small construction machinery, off-highway equipment and electricity Systems and other fields. These two products are the latest products of Cummins Inc. and have never been used in other countries in the world. Both models will be officially put into production in 2009.

In 2008, the global economy changed and China’s economy was facing serious challenges. The state implemented a tight monetary policy to control excess liquidity, and the bank’s deposit reserve reached a record high of 17.5%. Against this background, China Construction Bank and China Minsheng Bank compressed the scale of other enterprises' credit, and still provided Longan loans worth 1.2 billion yuan to the Foton Cummins Engine Project as planned, which shows the trust of the two banks in the development prospects of Foton Cummins.

Futian Cummins's related person in charge said: “Fukuda Cummins Corporation can make full use of China Construction Bank and China Minsheng Bank's rich and unique financial products, financial tools and financial platform to integrate the advantages of both shareholders, achieve multi-win-win situation and promote financial management With continuous improvement, Foton Cummins has formed strategic support for the parent business of both parties and has rapidly grown into a globally competitive engine manufacturer."

Foton Motors is the largest manufacturer of commercial vehicles in China and covers a full range of commercial vehicles. Cummins Inc. is the world's largest independent engine manufacturing company. Both Foton Motors and Cummins Company will jointly build Beijing Foton Cummins into a world-class light engine operating agency. Experts pointed out that Foton Motors can use the Foton Cummins project to successfully penetrate the developed markets of Europe, America, Japan and South Korea, and accelerate the internationalization of the company. And Cummins can also use this joint venture project to complete the strategic layout in China, to achieve a full range of local production of heavy, medium and light diesel engines.

View related topics: Cummins - world-class engine manufacturer

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