On August 28, 2013, Cummins and Chongqing Electromechanical Co., Ltd. held a signing ceremony for a new project in Chongqing. The company plans to introduce a new large-horsepower diesel engine product and a self-developed gas engine in Chongqing Cummins, a joint venture between the two parties, to build a new high-power diesel engine. The engine manufacturing base, the new large-horsepower diesel engine R&D center, and the integration of market sales channels.
This cooperation is expected to become an important milestone in the development of Chongqing Cummins. Wang Yuxiang, chairman of Chongqing Electromechanical Co., Ltd., commented on the leading significance of the cooperation. “The first cooperation in the 1980s achieved the manufacture of Cummins engines in Chongqing; the second cooperation in the mid-1990s created a A joint venture between heavy-duty and high-horsepower engines; today's third cooperation, Chongqing Cummins will upgrade to an international advanced power and technology center, and Chongqing will also accelerate the development of a world-class high-powered engine manufacturing base."
This move also shows that the guidance of high-end projects has become an important strategic choice for Chongqing Electrical and Mechanical Co., Ltd. to increase its strength and promote transformation and upgrading.
Reshape sustainable competitive advantage
The QSK50, QSK60 and QSK72 electronically controlled high-horsepower engines are one of the most advanced high-horsepower diesel engines in the world. They have a power output of 1,400 to 3,500 hp and are widely used in shale gas extraction, oil fields, ships, power generation, and construction machinery. Currently, only Cummins, Carter, MTU, Mannheim, Mitsubishi, and Perkins have the production capacity in the world, of which Cummins's technology and products are more advanced in the industry. For Cummins of the United States, if the transfer of new technology will face a variety of options, it can cooperate with Chongqing Cummins, or increase the production capacity of its British or Indian factories, or set up a separate factory in Wuxi, China and other places.
However, for Chongqing Cummins, the project is aspirational. In recent years, major domestic and foreign competitors have been optimistic about the market prospects of China's high-power engines. Some domestic companies have quickly entered this market area; many overseas brands have also accelerated the pace of localized production, and the competitive landscape of China's high-power generator market has taken place. Profound changes. In the face of pressures and challenges, Chongqing Cummins can maintain a sustainable competitive advantage in the domestic and global high-power engine market only by introducing advanced technologies of high-powered engines and expanding and optimizing the existing product spectrum.
In many difficult conditions, after two years, Chongqing, Beijing, London and the United States were transferred. After arduous negotiations, the Cummins High Horsepower engine project finally settled in Chongqing. In the eyes of Yu Gang, the general manager of Chongqing Electromechanical Co., Ltd. and chairman of Chongqing Cummins Co., Ltd., this is a project that all the company's employees have come to expect.
“The introduction of this project will enable Chongqing Cummins to have the driving force for sustainable development in the next 10 years, and it is committed to the manufacture of high-end equipment and also to the direction of the restructuring of the company.†Yu Gang told reporters that this new cooperation project is not just a product. The introduction of the project will also require the establishment of a large-horsepower engine R&D center, which will undertake the testing of Cummins East Asia products and lay a solid foundation for the future development of Chongqing Cummins.
Become a global high-power engine leader
At the signing ceremony, Chinese and US authorized representatives signed the "QSK50 and QSK60 high-powered engine licensing contract," "QSK72 high-powered engine licensing contract," "Parts supply agreement", "agency and distribution contract" and "CCEC market channels "Operational Agreement" and other packages.
According to the project content, Chongqing Cummins has introduced the world's advanced QSK50, QSK60 and QSK72 fully electronically controlled high-horsepower diesel engine platforms from Cummins of the United States; built a new high-horsepower diesel engine new product production base; independently developed gas engine products and promoted the development of natural gas, page Gas engines such as rock gas, biogas, coalbed methane, and petroleum associated gas; newly built R&D center for high-power engines with R&D, testing, and testing functions.
According to the project plan, after the entire electronically-controlled QSK50, QSK60, and QSK72 achieve localized manufacturing production, sales revenue is expected to reach US$1 billion in 2017 and continue to double to US$2 billion in 2022. Chongqing Cummins will gradually become a global high-power engine manufacturer. Base and leader.
It is understood that Cummins is the world's largest independent engine manufacturer and one of the earliest diesel engine companies to produce engines locally in China. In 1981, Chongqing Cummins, the predecessor of Chongqing Cummins, began licensing production of Cummins engines. It has a 32-year history. Chongqing Cummins, established in 1995, is Cummins' first engine joint venture factory in China. Its sales have increased from RMB 300 million at the beginning of establishment to RMB 3.25 billion in 2012.
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