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)