Xiangfan Kanghao Electromechanical Company and Cummins China Corporation Sign Joint Venture Agreement


Recently, Xiangfan Kanghao Electromechanical Co., Ltd. and Cummins China Co., Ltd. signed a joint venture agreement and the two parties reached a 50:50 joint venture partnership. Mr. Cao Side, vice president of the Cummins Group, and Mr. Li Zuoyuan, chairman of Kang Hao Electrical and Mechanical Co., Ltd. signed a joint venture agreement in Beijing. The joint venture company will become the sole channel partner of Dongfeng Cummins and Xi'an Cummins Generator Powertrain in China.

In the view of Cummins, establishing the right strategic partnership in China is crucial to increase its market share and consolidate its leading position in the global dispersed power generation industry. China has a decisive position in the global dispersed power generation industry. Its diesel generator sets and natural gas generator sets account for more than 30% of the world's output. In addition, the rapidly growing Chinese economy consumes more than 10% of the globally produced generator sets each year.
It is reported that the joint venture company will develop, manufacture, and sell power generation powertrains to China's power plant OEMs based on engines produced by Dongfeng Cummins Engine Co., Ltd. and Xi'an Cummins Engine Co., Ltd. The joint venture company will be located in Liyang City, Hubei Province, and will be operational in April next year. The initial production capacity will be 40,000 units/year, which will be further increased according to market needs.

"Combining Cummins Power Business and Kanghao's advantages in distribution channels and parts supply, the purpose of establishing a joint venture Cummins Power Technology Co., Ltd. is to further develop the power unit business for the Cummins joint venture between Dongfeng Cummins and Xi'an Cummins." Cummins Power China Manager Zhao Liujun said, “The new joint venture will provide better products, services, and brand positioning to customers of the Chinese generator set OEM, and achieve win-win development with partners and users. At the same time, we will also adopt the joint venture platform and Cummins Power's global network of channels jointly promotes the export business of Dongfeng Cummins and Xi'an Cummins Engines."

The joint venture company will provide better value products and services for China's generator set manufacturers by combining complementary advantages. Cummins will bring its award-winning brand, leading technology and rich product portfolio. Kang Hao Electromechanical will bring its strong parts business and Chinese market channels. This cooperation will also benefit Cummins' two major engine joint ventures in China, namely Dongfeng Cummins and Xi'an Cummins, by broadening the market coverage and facilitating the export of power generation products.

About Xiangfan Kanghao <br><br><br><br><br><br><br><br><br><br><br><br> Kanghao Electrical Engineering Co., Ltd. The company cooperates with Dongfeng Cummins and Dongfeng Automotive Engineering Research Institute to upgrade existing products in accordance with G-drive related national standards, safety standards and emission standards. At the same time, the company will intensify the development and application of construction machinery and other special purpose engines. . KangHao Electromechanical Engineering Co., Ltd. will face the market and operate the Dongfeng Cummins G-drive market with its customers' most popular normative market behaviors.

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