FOTON and Cummins Team up to Build a New Engine Plant in Thailand

April 04,2023

On March 30, 2023, FOTON Motor and Cummins announced that they had signed a contract to jointly invest in the construction of a FOTON Cummins engine plant in Thailand to provide powertrains for CP Foton's vehicles and to support its business in Southeast Asia. The signing marks a further and deeper cooperation between FOTON Motor and Cummins in providing more diversified power solutions for customers from global market.

As an emerging economy, ASEAN has become one of the regions with the greatest potential for development in the world. China, a long-term strategic partnership with ASEAN, has launched many policies such as the "One Belt, One Road" and "Go Global", to promote ASEAN a major investment destination for Chinese companies. In recent years, FOTON Motor has also expanded its operation in Southeast Asian countries, including Thailand, Malaysia and the Philippines. Now the share of its buses, trucks and special vehicles has been significantly increased and its reputation has been greatly enhanced in the region.

As a global power leader, Cummins has set up its Asia Pacific business headquarters in Singapore before entering the Chinese market. Its operations cover the entire South East Asia region, where a comprehensive service and distribution network have been set up after decades of explorations. With the export scale of Chinese commercial vehicles constantly expanding, it is increasingly important for Cummins to further improve its service and support system in Southeast Asia. By doing so, it can help its Chinese partners to quickly set up their sales and service systems and provide professional support on developing their business locally.

FOTON and Cummins have been working together for 17 years, from light duty to heavy duty engines, from complete engines to aftertreatment components, from simple manufacturing to Chain integration R&D, and from China to the world. The strategic cooperation between the two parties has set an example for the industry. Built on the previous partnership, both sides did extensive research on the market trend, laws and regulations, localization of engine plant before they made their final decision on setting an engine plant in Thailand. In the future, the two parties will use FOTON Cummins in Thailand to promote Foton's complete vehicle development in Southeast Asia.

As a supplier of main power components of automobiles, the new Thai engine plant will invest in a production line to produce all types of the diesel engines. The production line is flexible with production support and operation systems such as Oracle and CMES to integrate assembly, testing, painting and accessory production together to meet various requirements for products from the customers.

The Thai engine plant is scheduled to complete registration in 2023 and start production in 2024. It will be able to further boost sales and market share while enhancing its competitiveness, and eventually achieve the localization of supply chain system, sales and service system in ASEAN.

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