Heavyndo wins engine license

Heavyndo wins engine license

JAKARTA (JP): Cummins Engine Co. Inc. of the United States
announced yesterday it had licensed PT Perkasa Heavyndo to
produce Cummins' B Series engines in Indonesia.

The engines will be used initially to power medium-size and
heavy-duty trucks to be produced by Heavyndo, a Texmaco Group
subsidiary.

Cummins stated Heavyndo's project may eventually include
smaller trucks, construction and mining equipment and other large
machines.

"The initial investment will provide a capacity for 30,000
engines annually, which eventually could increase to an annual
capacity for 50,000 engines," the American company said.

According to Heavyndo, the project would be the largest of its
kind in Indonesia.

The license gives Heavyndo's parent, Texmaco, an option to
form a joint venture with Cummins to take advantage of fast-
developing ASEAN markets.

Heavyndo, which makes trucks and construction equipment, plans
to produce B Series engines at a plant in Subang, Central Java.

Cummins, a worldwide designer and manufacturer of diesel
engines, has signed similar agreements with other Asian firms
such as Komatsu of Japan, Telco of India, Engine Systems Ltd of
Pakistan and Dongfeng and Chongqing of China.

The B Series engines will range from 80 to 180 horsepower.
And, with a continually updated design, they will meet the needs
of Indonesians and other customers worldwide, Cummins said.

Texmaco president Marimutu Sinivasan said the licensing
agreement would build on his group's strategy to become a strong
and profitable engineering company.

"We have spent 15 years developing expertise to ensure we have
the infrastructure and people to manage such large projects,"
Sinivasan said.

The Texmaco Group, founded in 1960 and headquartered in
Jakarta, is one of the largest textile and engineering companies
in Indonesia, employing over 20,000 people throughout the
country.

Cummins, headquartered in Columbus, Indiana, the United
States, was founded in 1919. More than 40 percent of its sales
are to markets outside the U.S. (hen)