Cummins In Engine Joint Venture In Russia

Posted on January 25, 2006

Cummins Inc. and KAMAZ Inc., the largest vehicle manufacturer in Russia, announced today the signing of a joint venture agreement to produce B Series engines under the name ZAO Cummins Kama. The 50-50 joint venture will build on the Cummins and KAMAZ relationship that dates from the early 1980s. Among customers of the new company are KAMAZ trucks and buses, as well as trucks, buses and agricultural equipment produced by other manufacturers in Russia, Belarus and the Ukraine. The engines, with ratings from 120 to 275 hp, will be produced in two stages to comply with Euro 2 and Euro 3 emissions standards and will be be manufactured at the joint venture facilities, co-located with KAMAZ in Naberezhnye Chelny, Tatarstan, about 700 miles east of Moscow. The first engines will be assembled in early 2006.

As part of the joint venture agreement, Cummins engines will be serviced through the extensive KAMAZ network of 150 Autocenters, the largest in the Commonwealth of Independent States, as well as the Cummins independent dealer network. "Two years ago we began selling a six-ton truck to the Russian market and a Cummins engine was at the heart of our great success with this product," said Sergey Kogogin, general director of KAMAZ. "Cummins understands the potential of the Russian market and the opportunities that exist with KAMAZ. By establishing a joint venture, we have taken the next step toward cooperation. Now we are not just a seller and buyer, but business partners on an international scale."