Cummins Inc andà‚ Saudi investment, manufacturing and distribution giant The Olayan Groupà‚ announced this week that they have formed a 50/50 joint venture, Cummins Arabia.
Cummins said the JV aims to consolidate the distribution of its products in theà‚ UAE, Saudi Arabiaà‚ and Kuwait, three of its largest markets in the Middle East.
The company said the new partnership will allow it to greatly expand access to the Saudi and Kuwaiti markets as well as operate closer to its customer base.
The new firm will be formed, and a new operating structure implemented, in the second half of this year, with its headquarters to be located in Saudi Arabia and dedicated facilities planned.
Tom Linebarger, chairman and CEO of Cummins Inc, said: ‘Olayan brings years of Middle East experience, and this partnership provides opportunities for our companies to grow and expand in this region while enhancing the service and support we provide to customers.’
Lubna Olayan, CEO of Olayan Financing Company, said: ‘We began distributing Cummins products in Saudi Arabia in 1956 and have always viewed ourselves as operating in a real spirit of partnership. This new company will further enhance our product offerings and services in the region and is truly a win-win proposition.’à‚