Cummins Westport Signs Chinese Engine Agreement

Posted on October 14, 2005

Cummins Westport Inc. (CWI), through its parent company Cummins Inc., has signed a license agreement with Chinese manufacturer Dongfeng Cummins Engine Company Ltd. (DCEC), enabling DCEC to manufacture CWI natural gas B series engines in China.

CWI will provide the natural gas-specific technology for the 150 to 230 hp B Gas International (BGI) engines to be manufactured by DCEC at its manufacturing facilities located in Xiangfan, Hubei Province, China. Manufacturing is expected to begin in 2006.

DCEC is a 50-50 joint venture between Cummins and Dongfeng Motors. Currently, Cummins has a license agreement with DCEC to manufacture B and C diesel engines in China, producing over 120,000 engines in 2004. DCEC will use its existing assembly line for the production of the CWI BGI engine.

Dongfeng Motors manufactures trucks and buses, and this agreement will enable it to add a natural gas engine to its product offering. Service support will be provided through both the DFM and Cummins distribution networks in China. CWI will also market the BGI engine to other OEMs in China, and investigate opportunities for export.

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