A new joint venture (JV) by Hyundai Heavy Industries Co Ltd and Cummins Inc to manufacture engines for a range of Hyundai equipment is expected to create over 400 jobs in South Korea.

The 50-50 JV, Hyundai Cummins Engine Company (HCEC), will produce mid-range engines ranging from 150 hp. to 300 hp. (112-224 kW) output for application in Hyundai construction and industrial equipment.

"I am delighted to announce our new engine joint venture with Hyundai, one of the most highly respected companies in the global construction equipment industry and for many years, an important customer of Cummins' off-highway business," says Rich Freeland, vice president of Cummins and president of the firm's engine business.

He adds that the two companies will be able to share expertise and better position their parent companies for growth in world markets.

Byeong-Ku Choe, COO and president of Hyundai Construction Equipment Division, calls the JV "a natural progression of [both companies'] longstanding co-operation".

HCEC, to be based in Daegu, will start producing engines in 2014. The new facility will build over 50,000 engines annually and employ over 400 people at full production.

It will supply engines spanning the 5.9 L to 8.9 L displacement range for Hyundai excavators, wheel loaders and large forklifts built in Ulsan and in other countries.

The Hyundai-branded engines will power Hyundai equipment exported to emerging markets like Russia, the Middle East, Africa, Central Asia and South East Asia.

Jon M Mills, Cummins director of external communications, tells Forkliftaction.com News that "virtually all the engines produced at the JV are intended to be Hyundai-branded".

"The mechanically controlled 5.9 L and 8.3 L engine platforms meeting Tier 2 emissions will be produced by the HCEC plant, together with the electronically controlled 6.7 L and 9 L platforms meeting Tier 3 emissions. The scope of the JV is engine assembly only, and does not include engine machining," Mills explains.

According to Cummins, the US Environmental Protection Agency Tier 2 and Tier 3 off-highway emissions regulations are already in place or set to be introduced in many rapidly developing countries.

The partnership is expected to provide a further impetus for the two companies to accelerate other areas of engine supply co-operation, including Cummins' next generation of EPA Tier 4 Final and EU Stage IV low-emissions engines for regulations taking effect on 1 January 2014 in North America and Europe.

Headquartered in Columbus, USA, Cummins employs about 44,000 people worldwide and serves customers in approximately 190 countries and territories through an extensive dealer and distributor network.