Joint Venture Operation To Move Forward With Next-Generation Tier 4 EnginesOYAMA, Japan, Feb 05, 2010 (BUSINESS WIRE) -- The Komatsu-Cummins Engine Company (KCEC) in Japan has achieved a major manufacturing milestone with the recent production of the 500,000th engine from the Oyama joint venture operation.

The joint venture has also announced that the Oyama engine plant will move forward to produce the next generation of Tier 4 low-emissions engines for parent companies Komatsu Ltd. and Cummins Inc.

"Reaching the half-million engine mark represents another significant achievement in the long-established partnership between Komatsu and Cummins, which is widely regarded as the most successful and enduring in the off-highway industry," said Eric Neal, General Manager of Cummins-Komatsu Business Worldwide.

"The KCEC engine plant is highly regarded by both Komatsu and Cummins for its outstanding levels of quality, productivity and commitment to delivery. The introduction of the Tier 4 Interim engines at KCEC from 2010 onward will mean the plant will be ready to power the next generation of low-emissions, more fuel-efficient construction equipment," he added.

A highly flexible manufacturing system enables the KCEC facility to build engines to specific Komatsu and Cummins configurations derived from common base engine platforms.

The 3.3-liter, 4.5-liter and 6.7-liter displacement engines currently produced at the Oyama plant will move forward with performance-enhancing technology to meet Tier 4 Interim regulations as they are phased in by power band and effect date in Japan, North America and Europe. The current 8.3-liter engine produced at Oyama will be available for Tier 4 as a 9-liter version, offering a higher power output.

About Komatsu-Cummins Engine Company

The Komatsu-Cummins Engine Company (KCEC) joint venture between Komatsu Ltd. and Cummins Inc. was established in November 1993 at the Oyama Industrial Park in Tochigi Prefecture, Japan. The first B Series engine was produced in November 1995. KCEC is an integral part of both Komatsu Ltd. manufacturing operations and Cummins worldwide MidRange engine manufacturing operations. In April 2001, the KCEC plant was the first construction equipment facility in Japan to be recognized for achieving zero emissions.

About Komatsu Ltd.

Komatsu Ltd., headquartered in Tokyo, Japan, is a global leading manufacturer and sales company of construction and mining equipment, utilities and industrial machinery including components such as diesel engines and hydraulics components. Komatsu reported consolidated net sales of $20.4 billion in Fiscal Year 2009.

About Cummins Inc.

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana (USA), Cummins serves customers in approximately 190 countries and territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations. Cummins reported net income of $428 million on sales of $10.8 billion in 2009.