Cummins Forming New Distribution Joint Venture in Middle East

F-DIESEL 3/29/2016 6:07:47 PM

[Key Words] engines diesel engine Cummins Cummins diesel engine gas engines power generation systems

Cummins (NYSE:CMI), a diesel engine manufacturer, said Tuesday it is forming a new joint venture in the Middle East with Saudi conglomerate The Olayan Group. The new 50:50 joint venture, which will be named Cummins Arabia, will consolidate the distribution of Cummins products in the United Arab Emirates, Saudi Arabia and Kuwait. It will be headquartered in Saudi Arabia. Shares were marginally lower in recent morning trade, around the midpoint of the 52-week range of $79.88 – $143.40.

The Distribution segment distributes parts and filtration products, engines, and power generation products, as well as offers service solutions, including maintenance contracts, engineering services, and integrated products. The Components segment provides emission solutions, including custom engineering systems and integrated controls, oxidation catalysts, particulate filters, oxides of nitrogen reduction systems, and engineered components; turbochargers for light-duty, mid-range, heavy-duty, and high-horsepower diesel markets; air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and fuel systems for heavy-duty on-highway diesel engine applications, as well as remanufactures fuel systems. The Power Generation segment designs and manufactures components that make up power generation systems, including controls, alternators, transfer switches, and switchgears, as well as offers power generation systems, components, and services. The company sells its products to original equipment manufacturers, distributors, and other customers worldwide. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products. It operates through four segments: Engine, Distribution, Components, and Power Generation. The Engine segment offers various diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and services, as well as remanufactured parts and engines.

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