Cummins to invest a total of $150 million in
battery electric vehicle component manufacturing and job
creation
Cummins Inc. (NYSE: CMI) announced today that the company has
been awarded $75 million to convert approximately 360,000 sq. ft.
of existing manufacturing space at its Columbus (Indiana) Engine
Plant (CEP) for zero-emissions components and electric powertrain
systems. The $75 million grant is the largest federal grant ever
awarded solely to Cummins and is part of the appropriations related
to the Inflation Reduction Act.
Cummins will match the grant and invest $75 million for a total
of $150 million to convert the space and expand production of
battery packs, powertrain systems and other battery-electric
vehicle (BEV) components for Accelera by Cummins, the company’s
zero-emissions business segment. To support this additional
manufacturing capacity, Cummins anticipates adding approximately
250 full-time jobs, with opportunities for the plant’s existing
workforce to transition to many of these positions over time.
“This DOE grant is another step forward in the progress we are
making toward a zero-emissions future and expanding battery
manufacturing in the United States, strengthening our global
position in electrified solutions for commercial markets,” said Amy
Davis, President of Accelera by Cummins. “Today’s announcement
represents a crucial step in advancing electrification and domestic
battery supply chains. Partnership with government, customers, and
the industry as a whole is required to accelerate the shift to
zero. We are proud of this milestone and to be adding clean tech
jobs to develop the workforce and communities of the future.”
After the completion of this project, CEP will house
approximately 350 employees focused on BEV-related work. Nearly
half of the 1.42 million sq. ft. facility, which opened in 1926,
will be dedicated to zero-emissions manufacturing. The electric
powertrains produced at CEP will result in greenhouse gas emission
reductions of approximately 104 million metric tons of carbon
dioxide by 2030.*
Through its Destination Zero strategy, Cummins is committed to
helping customers seamlessly and successfully transition to a
zero-emissions future and understands that a variety of solutions
are required to reach this goal. The company is unique in its
ability to meet customers’ needs wherever they are in their
journey, offering fuel-agnostic engine platforms powered by
advanced diesel, natural gas and alternate fuels; fully electric
and hydrogen fuel cell solutions; and key components. Cummins
continues to be committed to advancing all of these solutions.
"Known as Plant One, CEP was Cummins’ first engine plant in our
headquarter city of Columbus, Indiana, and this grant from the DOE
allows us to broaden the legacy of the site even further. By
expanding the production of batteries and electric vehicle
components at CEP, at the same plant where we manufacture blocks
and heads for our current and next-generation, engine-based
solutions, we continue to prove our commitment to Destination Zero
and dedication to innovation, strengthening the communities we
serve and environmental stewardship,” said Jennifer Rumsey, Chair
and CEO of Cummins. “As a Columbus native, I am especially proud of
the significant contribution Cummins is making to economic and
social vibrancies of the local community alongside our broader
goals of improving and decarbonizing commercial and industrial
applications.”
“As a City, Columbus has benefited from Cummins’ innovative
spirit and technology investments for over 100 years,” said Mary
Ferdon, Mayor of Columbus. “This expansion by Accelera reinforces
the commitment the company has made to clean energy and a more
sustainable future. Columbus also benefits from the re-investment
in our workforce and the conversion of CEP space for advanced
technology. We’re excited about this $150 million investment which
moves the company forward in its zero-emissions manufacturing and
de-carbonization goals and we’re proud to celebrate this milestone
award from the Department of Energy.”
*Emissions reduction of BEV compared to ICE heavy-duty
commercial vehicles
About Cummins Inc.
Cummins Inc., a global power solutions leader, is comprised of
five business segments – Components, Engine, Distribution, Power
Systems and Accelera by Cummins – supported by our global
manufacturing and extensive service and support network, skilled
workforce and vast technological expertise. Cummins is committed to
its Destination Zero strategy, which is grounded in the company’s
commitment to sustainability and helping its customers successfully
navigate the energy transition with its broad portfolio of
products. The products range from advanced diesel, natural gas,
electric and hybrid powertrains and powertrain-related components
including, aftertreatment, turbochargers, fuel systems, valvetrain
technologies, controls systems, air handling systems, automated
transmissions, axles, drivelines, brakes, suspension systems,
electric power generation systems, batteries, electrified power
systems, hydrogen production technologies and fuel cell products.
Headquartered in Columbus, Indiana (U.S.), since its founding in
1919, Cummins employs approximately 75,500 people committed to
powering a more prosperous world through three global corporate
responsibility priorities critical to healthy communities:
education, environment, and equality of opportunity. Cummins serves
its customers online, through a network of company-owned and
independent distributor locations, and through thousands of dealer
locations worldwide and earned about $735 million on sales of $34.1
billion in 2023. See how Cummins is powering a world that's always
on by accessing news releases and more information at
https://www.cummins.com/.
Forward-looking disclosure statement
Information provided in this release that is not purely
historical are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including
statements regarding our forecasts, guidance, preliminary results,
expectations, hopes, beliefs and intentions on strategies regarding
the future. These forward-looking statements include, without
limitation, statements relating to our plans and expectations for
our revenues, EBITDA and the Settlement Agreements to resolve
regulatory proceedings regarding our emissions certification and
compliance process for certain engines primarily used in pick-up
truck applications in the U.S. Our actual future results could
differ materially from those projected in such forward-looking
statements because of a number of factors, including, but not
limited to: any adverse consequences resulting from entering into
the Settlement Agreements, including required additional mitigation
projects, adverse reputational impacts and potential resulting
legal actions; increased scrutiny from regulatory agencies, as well
as unpredictability in the adoption, implementation and enforcement
of emission standards around the world; evolving environmental and
climate change legislation and regulatory initiatives; changes in
international, national and regional trade laws, regulations and
policies; changes in taxation; global legal and ethical compliance
costs and risks; future bans or limitations on the use of
diesel-powered products; failure to successfully integrate and / or
failure to fully realize all of the anticipated benefits of the
acquisition of Meritor, Inc.; raw material, transportation and
labor price fluctuations and supply shortages; aligning our
capacity and production with our demand; the actions of, and income
from, joint ventures and other investees that we do not directly
control; large truck manufacturers' and original equipment
manufacturers' customers discontinuing outsourcing their engine
supply needs or experiencing financial distress, or change in
control; product recalls; variability in material and commodity
costs; the development of new technologies that reduce demand for
our current products and services; lower than expected acceptance
of new or existing products or services; product liability claims;
our sales mix of products; climate change, global warming, more
stringent climate change regulations, accords, mitigation efforts,
greenhouse gas regulations or other legislation designed to address
climate change; our plan to reposition our portfolio of product
offerings through exploration of strategic acquisitions and
divestitures and related uncertainties of entering such
transactions; increasing interest rates; challenging markets for
talent and ability to attract, develop and retain key personnel;
exposure to potential security breaches or other disruptions to our
information technology environment and data security; political,
economic and other risks from operations in numerous countries
including political, economic and social uncertainty and the
evolving globalization of our business; competitor activity;
increasing competition, including increased global competition
among our customers in emerging markets; failure to meet
environmental, social and governance (ESG) expectations or
standards, or achieve our ESG goals; labor relations or work
stoppages; foreign currency exchange rate changes; the performance
of our pension plan assets and volatility of discount rates; the
price and availability of energy; continued availability of
financing, financial instruments and financial resources in the
amounts, at the times and on the terms required to support our
future business; and other risks detailed from time to time in our
SEC filings, including particularly in the Risk Factors section of
our 2023 Annual Report on Form 10-K and Quarterly Reports on Form
10-Q. Shareholders, potential investors and other readers are urged
to consider these factors carefully in evaluating the
forward-looking statements and are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements made herein are made only as of the date of this release
and we undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise. More detailed information about factors
that may affect our performance may be found in our filings with
the SEC, which are available at http://www.sec.gov or at
http://www.cummins.com in the Investor Relations section of our
website.
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version on businesswire.com: https://www.businesswire.com/news/home/20240711698882/en/
Jon Mills Director, External Communications 317-658-4540
Jon.mills@cummins.com
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