Shanghai (ZXZC)- The U.S-based multinational engine manufacturer Cummins and Chongqing Machinery & Electric Co., Ltd. (“CQME”), a Chinese CV component supplier, together announced on May 17 the continuation of their joint-venture partnership, according to a post on Cummins’ WeChat account.

Signing ceremony; photo credit: Cummins

Under the agreement newly signed, both parties will extend their cooperation to 2040, aiming to further boost the sustainable development of their joint venture, Chongqing Cummins Engine Company (“CCEC”). The shareholding ratio and dividend ratio of both parties will remain unchanged.

Per the new contract, CCEC will introduce the QSK60 engine production platform to expand its product lineup. Engines riding on the Cummins-owned platform have been highly regarded by Chinese clients due to outstanding performance, high power density, low carbon footprints, and stellar reliability. Cummins said the local production of the QSK60 platform would greatly help the joint venture shorten lead-time and offer clients better full-lifecycle bespoken services.

The original joint venture contract entered into in 1995 will expire in 2025.

Founded in 1995, CCEC is a 50/50 joint venture between Cummins and CQME. It is the first China-based engine joint venture of Cummins, and also the U.S.-based parent's only high-horsepower engine manufacturing base in the world’s largest auto market.

On Jan. 27, 2015, CCEC broke ground on its new facility in Chongqing, which included a technology center dedicated to high-horsepower engine engineering and a new engine manufacturing plant.