COLUMBUS, Ind. -Cummins Engine has agreed with Wartsila NSD of Finland to divide the operations and assets of their European joint venture, Cummins Wartsila.The joint venture, created in 1995, was set...
COLUMBUS, Ind. -Cummins Engine has agreed with Wartsila NSD of Finland to divide the operations and assets of their European joint venture, Cummins Wartsila.
The joint venture, created in 1995, was set up to design, develop and manufacture a new generation of heavy-duty, high-speed diesel and natural gas engines.
The scope of the joint venture was expanded in 1997 to include marketing, sales, engineering and service.
Cummins will take a pretax charge of approximately US $60 million in the fourth quarter for costs associated with the split.
Cummins will take over the manufacture, global sales and service of the CW 170/180 product line, including the operations and assets of the factory in Daventry, England. The company will also provide support to all the joint venture customers who purchased the CW 170/180 engines.
Cummins share of the loss from the joint venture is expected to be $35 million.
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