Cummins Inc. and Guangxi LiuGong Machinery Co. Ltd. have formed a joint-venture partnership to manufacture engines at a new facility to be built in Liuzhou City, Guangxi Province, in southern China. The JV operation is expected to commence engine production in 2013, with initial operations beginning as early as 2012 to include engine-kit assembly. Volume is planned to reach 50,000 units with the capability to expand in the future. The engines, which will be based on Cummins MidRange engines meeting Tier 2 and Tier 3 emissions, will be fully localized in China and “purpose-designed” for construction equipment usage by the JV to meet the demand of LiuGong and other equipment manufacturers in China. Cummins currently supplies MidRange engines to LiuGong for both its domestic market in China and for its global operations. The engine supplier sees promise in employing this “fit-for-market approach,” customizing engines to meet specific economic and operational requirements.