Guangxi Liugong Machinery (000528) filed it will establish a joint venture with Cummins (China) Investment with registered capital of 400 million yuan, reports yicai.com. Liugong will contribute 200 million yuan for 50-percent holdings in the joint venture.
The new entity will specialize in the production, sales, and service of diesel engines complying with Stage II and III standards for non-road engines. Initial investment in the program is one billion yuan, including the 400 million yuan as its registered capital.
Cummins (China) Investment has registered capital of $124.77 million and is wholly-owned by Indiana-based engine giant Cummins Inc. It is engaged in investment, investment management, and related services in the engine industry in mainland China.