Global cooperation & strategic win-win | XCMG and Cummins signed a strategic partnership agreement

On October 17, XCMG and Cummins signed a strategic partnership agreement in Xuzhou. The two sides pledged to deepen global cooperation in the complete product lineup and whole value chain. XCMG and Cummins shall explore new applications and markets, share resources, build and continuously improve global R&D, manufacturing and service system, and jointly create an innovative and sustainable high-end platform.


▲Lu Chuan, President of XCMG Machinery, and Liu Xiaoxing, Vice President of Cummins, signed the agreement


Qi Jun, President of China Construction Machinery Association, attended and delivered a speech. Wang Min, Chairman and Party Secretary of XCMG, Lu Chuan, President and Deputy Party Secretary of XCMG Machinery, Wu Jianglong, Vice President of XCMG Machinery, Li Zong, General Manager and Party Secretary of XCMG Mining Machinery, Steve Chapman, Vice President of Cummins, Liu Xiaoxing, Vice President of Cummins and General Manager of Cummins Engine Business Division in China, Julie Furber, Vice President of Cummins and Executive Director of Cummins Power Generation Business Division in China, as well as other leaders, partners, customers and media witness this glorious moment together.


Strong alliance, leading the development of the industry

▲Steven Chapman, Vice President of Cummins


"Cummins is committed to working with XCMG to promote technological progress and industrial upgrading in China market," Steve Chapman, Vice President of Cummins, said at the ceremony. He said Cummins would establish a global application engineering support team to fully support XCMG's overseas strategy, and he looked forward to opening a new chapter of strategic cooperation with XCMG.

▲Wang Min, Chairman and Party Secretary of XCMG

Chairman Wang Min, highly recognized the strategic cooperation between the two sides, and hoped that the two sides would work together for a win-win situation and build a model of global cooperation in the construction machinery industry. According to him, the global manufacturing industry is transforming to green, environmental protection, high efficiency and emission reduction. It is hoped that both sides will continuously expand effective supply to the society through environmental protection, sustainable development and support for economic growth and prosperity, lead and drive the enterprises in the supply chain to constantly improve the utilization efficiency of resources and energy and realize green development.


▲Qi Jun, President of China Construction Machinery Association


President Qi Jun lavished praise on the deepening cooperation between XCMG and Cummins. "Whoever understands the times is a real hero. The establishment of a long-term and stable partnership between XCMG and Cummins is conducive to the advantages of both sides, and will help resist risks in the turbulent economic environment, promote sound development of whole industrial chain, and achieve the goal of global cooperation and strategic win-win."


Innovation driven, creating high-end quality


Both two sides are global powers and leading enterprises in the construction machinery industry, and their cooperation dates back a long history. Cummins, as one of the most important strategic partner suppliers of XCMG, started to cooperate with XCMG in the 1980s and has been working hand in hand for 34 years. 

▲XCMG 700t hydraulic excavator, "No. 1 Excavator of China"


At present, Cummins and XCMG have cooperated with each other in all product lines. The two sides have carried out fruitful cooperation in such fields as high added value, high reliability, high technology and large tonnage product innovation, engine system integration optimization, and after-market of XCMG. XCMG 4000t XGC88000 crawler crane with the reputation of "No. 1 Crane in the World" and XCMG 400t super large tonnage hydraulic excavator are equipped with Cummins engine, breaking many technical bottlenecks and becoming the benchmark of the industry. XCMG Brazil and Cummins Brazil have also started localized cooperation since 2013. In 2019, Cummins engines purchased by XCMG globally reach a record high.

▲XCMG 4000t super large tonnage XGC88000 crawler crane


In addition to the traditional diesel engine business, Cummins and XCMG have also launched the first domestic electric project in the field of construction machinery, opening a new chapter in the technical cooperation of electric power between the two sides. "We are excited to work together with XCMG to design, develop and test the cutting-edge technologies leading the development of the industry," said Julie Furber, Vice President of Cummins. In the future, XCMG and Cummins will jointly develop new digital interconnection technologies and applications of XCMG and Cummins products to further improve product quality and after-sales service.


Alliance development, building a global chain


Wang Min proposed that XCMG should forge an "Alliance" with suppliers, supporting manufacturers and other enterprises, and "advance together". For a long time, XCMG has always adhered to the concept of "Alliance" and has built a world-class quality supply chain system with a large number of suppliers, providing customers with better product experience, driving the positive development of the whole industry chain.

▲Jointly embarking on a new journey of win-win global strategic partnership


With the deepening of supply chain management, XCMG and suppliers set up a "collaborative R&D workshop" to share R&D costs and risks, improve R&D efficiency, and comprehensively weaken the uncertainty of technology research and development. Besides, XCMG has made deep efforts in supply chain quality management, promoting the cooperation between the two sides in upstream and downstream of the chain, and jointly creating excellent products with suppliers.

For the past few years, XCMG has been deeply integrated with suppliers, making full use of the Internet of things, cloud computing, digital broadband and other new generation information technologies, implanting digital and intelligent genes into the supply system, and establishing a purchasing and logistics system integrating comprehensive perception, fusion application and information support. For example, the Handle system links different systems, and plays a huge role in promoting suppliers to achieve tracking, visual inventory query, abnormal data warning, customer service and other functions.

As the leader of China's construction machinery industry, XCMG promotes development with innovation and reform, and strives to make continuous breakthroughs in high-end, intelligent, well-developed and large-scale construction machinery technologies. In the future, XCMG will work together with its partners to create a new high-end pattern of global supply chain system and strive for a better future with open and inclusive attitude.