Cummins invests US$ 44 million to expand production capacity in San Luis Potosi
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Diesel and natural gas engines manufacturer Cummins announced it will invest US$ 44 million to increase its production capabilities at three plants located in San Luis Potosi, where the company builds engines ranging from 4 to 10 liters of displacement.
The company produces 180 engines a day in San Luis Potosi, but that figure will increase to 200 daily units in 2018 due to the investment, which will also translate into greater capacity to continue growing in the coming years.
Ignacio García, vice president of Cummins Latin America, said that the production of engines has increased 6% every year for the last five years. "All the production is for export and this 2017 we will export US$ 1.2 billion from our four manufacturing plants in Mexico," he explained. Cummins exports 80% of its production to the United States and 20% to England.
Cummins has four manufacturing plants installed in Mexico: three in San Luis Potosi (engines, components such as filters and electrical systems), and another factory in Juarez, Chihuahua (which manufactures fuel and after-treatment systems). All X15 engine fuel systems for the global market are manufactured in Mexico.
The operation of the San Luis Potosi plant is one of the most complex, since the engines produced in there vary from four to 10 liters, while in the rest of the world, they usually specialize in a single product. According to Garcia, the company also has plans to manufacture electric motors in the country, but it would be until 2019 or 2020.