– Cummins Inc. has selected the Columbus Engine Plant (CEP) as the production facility for its new family of light-duty, clean, diesel engines, which the company plans to begin manufacturing by no later than 2010. Preparations for the manufacturing lines are scheduled to begin in mid-2007 and are expected to create 200 additional jobs by the end of next year. Cummins expects the new line to employ at least 600 to 800 people within two years of the product launch.
DaimlerChrysler will be the major customer for the engine, which will be designed to power vehicles below 8,500 lbs. gross vehicle weight for a number of automotive applications. Cummins expects the manufacturing lines for the new engine to occupy approximately 500,000 square feet of the 1.4 million square feet of space at CEP devoted to manufacturing. CEP was Cummins first full-fledged manufacturing facility and has been in use since 1926. Approximately 630 people currently work at CEP.
Cummins anticipates it will spend approximately $250 million, which includes capital expenditures for machinery and equipment, plus facility upgrades.
The concept for the light-duty, diesel engine is the result of a nine-year partnership between Cummins and the Department of Energy. A critical factor in the company’s decision to locate the manufacturing line in Indiana was a commitment from state government and leading educational institutions to create and support programs aimed at providing the skills necessary to succeed in an advanced manufacturing environment.
Originally posted on Fleet Financials