COLUMBUS, Ind.--(BUSINESS WIRE)--Mar. 29, 2016--
Today, Cummins Inc. (NYSE: CMI) and The Olayan Group announced the
formation of Cummins Arabia, a 50:50, three-country distribution joint
venture company in the Middle East.
This joint venture consolidates the distribution of Cummins products in
the United Arab Emirates (UAE), Saudi Arabia and Kuwait. Those products
are currently distributed by Cummins’ wholly-owned UAE distributor and
Olayan-owned independent distributors – General Contracting Company
(GCC) in Saudi Arabia and General Transportation and Equipment (GTE) in
Kuwait. These three countries represent some of the largest markets for
Cummins in the Middle East. The partnership allows Cummins to greatly
expand access to the Saudi and Kuwaiti markets and operate closer to its
customer base. At the same time, it will provide a valuable platform for
the training and employment of nationals in each country.
“Cummins is pleased to partner with Olayan, which is a highly respected
leader in the global distribution business, ” said Tom Linebarger,
Chairman and CEO, Cummins Inc. “Olayan brings years of Middle East
experience, and this partnership provides opportunities for our
companies to grow and expand in this region while enhancing the service
and support we provide to customers. Cummins will continue to look for
new ways to build global partnerships that drive growth and success for
our company, our partners, and our customers.”
Lubna Olayan, CEO of Olayan Financing Company, commented: “We view our
new joint venture as a natural evolution of the close working
relationship that has existed between us and Cummins for more than 60
years. We began distributing Cummins products in Saudi Arabia in 1956
and have always viewed ourselves as operating in a real spirit of
partnership. This new company will further enhance our product offerings
and services in the region and is truly a win-win proposition – for
Cummins, for us, and for our customers."
The joint venture entity will be formed and the new operating structure
implemented in the second half of 2016. It will be headquartered in
Saudi Arabia. Plans are underway to build dedicated facilities there.
The consolidation of joint activities under this new entity provides
opportunities for both companies to better align goals and work as one
company, delivering the full power of the Cummins brand to meet every
customer need and grow market share. Equally as important, the joint
venture allows Cummins and Olayan to achieve greater scale, improve
parts availability and inventory management, and centralize specific
functional support across these countries to provide enhanced and
consistent, world-class service to customers in the region.
Cummins Inc., a global power leader, is a corporation of complementary
business units that design, manufacture, distribute and service diesel
and natural gas engines and related technologies, including fuel
systems, controls, air handling, filtration, emission solutions and
electrical power generation systems. Headquartered in Columbus, Indiana,
(USA) Cummins currently employs approximately 55,000 people worldwide
and serves customers in approximately 190 countries and territories
through a network of approximately 600 company-owned and independent
distributor locations and approximately 7,200 dealer locations. Cummins
earned $1.4 billion on sales of $19.1 billion in 2015. Press releases
can be found on the Web at www.cummins.com.
Follow Cummins on Twitter at www.twitter.com/cummins and
on YouTube at www.youtube.com/cumminsinc.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160329006093/en/
Source: Cummins Inc.
Jon Mills, 317-658-4540