Cummins to Set Up Manufacturing Site in Turkey to Produce Filtration Units, Alternators

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Researched by Industrial Info Resources (Sugar Land, Texas)--Cummins Incorporated (NYSE:CMI) (Columbus, Indiana), which is the world's largest independent diesel and gas engine manufacturer, is planning a multi-phased manufacturing plant at the Aegean Free Trade Zone in Izmir, Turkey.

Cummins intends to invest $70 million in the proposed plant, and chose the location in Turkey after going through a lengthy selection process that considered more than 20 alternative locations ranging through Europe, Asia and northern Africa.

According to Joseph Saoud, the president of Cummins Filtration, "Turkey is literally at the crossroads of Europe, the Middle East and Africa, and this location will be in the middle of some of Cummins' strongest markets." The location also will complement similar facilities operated by Cummins in the U.K., France and Belgium.

"Turkey is a well-established manufacturing center, with many capable suppliers and a large and expanding customer base," Saoud continued. "Turkey also has a young, growing labor force that we expect to continue to be cost-competitive for many years to come."

Saoud also spoke highly of the involvement of the Turkish Investment Support and Promotion Agency in the selection process, adding, "We have been delighted with their support and enthusiasm for this project."

Under the schedule for the proposed facility, the first phase will commence with the construction for Cummins Filtration of a filtration-manufacturing plant at the 1 million square foot site, beginning in early 2011 and producing the first units in 2012.

Following the filtration manufacturing plant, Cummins Generator Technologies will then construct a production facility for alternators for the company's power generation business. In total, Cummins expects to employ an 800-strong staff in Turkey within five years, and about 85% of the products manufactured at the new facility are destined for Cummins' customers in Europe, Asia, the Middle East and Africa.

Earlier this year Cummins announced plans to invest more than $105 million in two separate expansions to its facilities in Columbus. In July, Cummins announced plans to invest $100 million to double the size of its engine plant, adding up to 200 jobs over the next few years.

In October, the company announced plans to invest $5.25 million in refurbishing an 83,000-square-foot facility previously occupied by the First National Bank to suit an expanded engineering and design department. In total, the company expects to create nearly 350 additional jobs by 2012 at its headquarters.

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