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Cummins introduces diesel hybrid mining truck in China

EditorEmilio Ghigini
Published 04/19/2024, 09:50 AM
CMI
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COLUMBUS, IN - Cummins Inc . (NYSE:CMI) has recently launched a diesel hybrid solution for mining trucks in a collaborative effort with North Hauler Joint Stock Co., Ltd. (NHL), a prominent Chinese manufacturer of rigid mining trucks. This initiative marks a significant step in the company's efforts to provide decarbonization solutions for industrial clients.

The NHL NTH260, a 220 metric ton payload mining truck equipped with Cummins' hybrid system, was unveiled in January and is set to undergo field testing at Baiyun Iron Mine of Baogang Group in China. The hybrid system has allowed the truck's engine size to be reduced from a 2,500HP QSK60 to a 2,000HP two-stage QSK50, which is expected to offer improved total cost of ownership through initial cost savings, better fuel efficiency, and an extended engine service life.

Jenny Bush, President of Cummins Power Systems, expressed enthusiasm for this milestone in the company's journey to provide practical decarbonization solutions to the mining industry. The advanced hybrid technology is anticipated to enhance fuel efficiency by up to 30%, depending on the mine profile and integration of advanced battery technology and controls.

Haiquan Guo, General Manager of NHL, highlighted the 40-year partnership with Cummins and the shared commitment to advancing equipment hybridization for the benefit of the global mining community. Cummins engines are a standard configuration in NHL's range of trucks, which vary from 35 to 360 metric tons in payload capacity.

Molly Puga, Executive Director of Strategy, Digital and Product Planning at Cummins Power Systems, emphasized the company's focus on enabling various paths to carbon neutrality for industrial markets, which includes both new installations and retrofit solutions. Collaborations with customers like NHL and Baiyun Iron Mine are instrumental in speeding up product availability and achieving carbon reduction goals.

Cummins, a global leader in power solutions, is dedicated to its Destination Zero strategy, which aligns with its commitment to sustainability and assisting customers in the energy transition. In 2023, Cummins approved the use of unblended renewable diesel in all its industrial high-horsepower engines. The company continues to power a more prosperous world through its diverse range of products and services.

This news is based on a press release statement from Cummins Inc.

InvestingPro Insights

As Cummins Inc. (NYSE:CMI) continues to innovate with its new diesel hybrid solution for mining trucks, the company's financial health and market performance offer additional insights. With a market capitalization of $39.86 billion, Cummins stands as a significant player in the machinery industry, reflecting its longstanding stability and growth potential.

The company's commitment to sustainability and technological advancements is also mirrored in its financials. Cummins has demonstrated robust revenue growth over the last twelve months as of Q4 2023, with a 21.34% increase, highlighting its ability to expand its business while pursuing environmental goals. This growth is complemented by a gross profit margin of 24.22%, indicating effective cost management and a strong market position.

Investors may find Cummins' stock appealing, as it has shown a strong return over the last three months, with a price total return of 27.96%. This performance is likely influenced by the company's innovative initiatives and its ability to adapt to changing market demands. Additionally, Cummins has raised its dividend for 18 consecutive years and has maintained dividend payments for 54 consecutive years, offering potential long-term value to shareholders.

To gain deeper insights into Cummins' performance and future prospects, interested parties can explore further InvestingPro Tips which include expectations of net income growth this year and the company's moderate level of debt. For those looking to make more informed investment decisions, InvestingPro provides a comprehensive suite of data and analytics. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the 11 additional tips listed in InvestingPro that could guide your investment strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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