Cummins announces Middle-East partnership

Cummins has announced a joint-venture in the Middle East. Jon Mills, Cummins’ director of External Communications, says that the Columbus-based diesel engine manufacturer is joining with the Olayan Group in the formation of Cummins Arabia. He says this new venture “a fifty-fifty, three-country distribution joint venture company in the Middle East.”

Mills says that this joint venture consolidates the distribution of Cummins products in the United Arab Emirates (UAE), Saudi Arabia and Kuwait. Those products are currently distributed by Cummins’ wholly-owned UAE distributor and Olayan-owned independent distributors, General Contracting Company (GCC) in Saudi Arabia and General Transportation and Equipment (GTE) in Kuwait. He explains that these three countries represent some of the largest markets for Cummins in that region. Mills says that the partnership allows Cummins to greatly expand access to the Saudi and Kuwaiti markets and operate closer to its customer base. At the same time, he says that it will provide for the training and employment of nationals in each country.

“Cummins is pleased to partner with Olayan, which is a highly respected leader in the global distribution business,” said Tom Linebarger, Chairman and CEO of Cummins. “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.” Linebarger went on to say that “Cummins will continue to look for new ways to build global partnerships that drive growth and success for our company, our partners, and our customers.”

Lubna Olayan, CEO of Olayan Financing Company, said: “We view our new joint venture as a natural evolution of the close working relationship that has existed between us and Cummins for more than 60 years. 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 – for Cummins, for us, and for our customers.”

Mills says that the joint venture will be formed and the new operating structure implemented in the second half of this year. He added that it will be headquartered in Saudi Arabia, where dedicated facilities will be built.