In 2013, Chinese President Xi Jinping proposed the strategy of building the “Silk Road Economic Belt†and “21st Century Maritime Silk Roadâ€. Regardless of whether it is land or sea, the West Asia region has become the only way for the “One Belt and One Road†and it has naturally become its key node.
Commissioning generator set
China's OEMs have begun to deepen their development in the West Asia market under the “One Belt and One Road†strategy, and Cummins has become a “good helper†for OEMs. Construction machinery, vehicles, and generator sets carrying Cummins engines are sold everywhere.
In order to upgrade the after-sales service system of Cummins in West Asia and to better use Cummins products with local end customers, on March 27 this year, Cummins and the Olayan Group of Saudi Arabia jointly announced the establishment of a 50:50 joint venture company in Saudi Arabia. It will focus on Cummins' distribution business in the West Asia region.
The new joint venture company will integrate and strengthen Cummins’ original distribution business in Saudi Arabia, the United Arab Emirates and Kuwait. The business volume of these three countries accounts for most of Cumminssia’s market share. Previously, Cummins products were locally marketed by a wholly-owned Cummins dealer and two Olayan-owned distributors. This cooperation will expand Cummins' business in West Asia and be closer to end customers. At the same time, the new platform will provide more employment and training opportunities for the countries in the region.
The new joint venture is expected to be operational in the second half of 2016, and its supporting independent operating facilities are also planned.
Tom Linebarger, chairman and chief executive officer of Cummins, said: “Olayan Group enjoys a good reputation in the global distribution field. Cummins is very happy to cooperate with such a company. The Olayan Group has many years of operating experience in the local area. This cooperation will not only make Cummins The opportunity to enhance its business in the West Asia region can also provide customers with better services and support."
Olayan Finance CEO Lubna Olayan said when talking about cooperation: “Olayan has been selling Cummins products since 1956 and has always seen the two parties as partners. After 60 years of cooperation with Cummins, the joint venture company can be said to be a matter of course. The new company will undoubtedly promote local product sales and services, whether for ourselves, Cummins, or both.
Let's review some of the results achieved by Cummins in helping China's OEM "Belt and Road" strategy in 2015:
· Golden Dragon and Yutong buses carrying Cummins ISB and ISL platform engines are sold to countries in West Asia;
· XCMG large excavators equipped with Cummins QSB and QSM engines are exported to West Asia;
· Cummins High Horsepower N-Series and K-Series engines are installed on generators and ship machines of China's main engine plant and exported to West Asia;
• Three Cummins Power 2250kw units provided power support for the Dubai International Airport in the UAE, and more Cummins Power generating units were also applied to Saudi oilfield operations.
Cummins has increased its distribution and service capabilities in the West Asia region and will have more resources to ensure that Chinese OEMs will expand into the West Asian market and thus jointly improve their business capabilities in the local market. At the same time, Cummins will continue to seek new ways to establish global partnerships that will benefit more customers.
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