Cummins Inc. (CMI - Analyst Report) has announced the launch of three new innovations at MINExpo. The new innovations are dual-fuel engines, the next-generation QSK50 engine and increase of high-horsepower engine remanufacturing capacity. These new technologies will facilitate clean, powerful and reliable engines and related technology for the mining customers.
The company will be developing dual-fuel engines for mine-haul trucks. This technology will be a substitute for diesel fuel in the combustion process for natural gas. The first engine equipped with dual fuel technology is the QSK60 engine. The engine will be available in standard and high-altitude configurations, which will support further fuel cost reduction.
The dual fuel technology provides customers flexibility to operate with 100% diesel fuel or opting for dual fuel mode, depending on the amount of natural gas available in the site. QSK Series engines conform to the U.S. Environmental Protection Agency (EPA) Tier 4 Final emissions standards.
Cummins will also be enhancing the high-horsepower engine remanufacturing capacity by 100%. Concurrently, production is expected to increase to 7,000 units per year by 2016, to cater to the rising demand for mining equipments. The rebuilt process of the company ensures that the equipment operator receives rebuilt engine which are reliable with better performance.
The rebuild facilities are strategically located keeping an eye on places with higher number of the company’s powered haul trucks, loaders, excavators, drill rigs and other mining equipment. The company plans to further expand engine rebuild facilities to new locations and upgrade some of the existing facilities.
Cummins will be launching the QSK50 engine with EPA Tier 4 final ultra-low emissions standards. The 16-cylinder, 50-liter engine is powered by fully-integrated Cummins Selective Catalytic Reduction (SCR) aftertreatment system. The SCR system along with clean-combustion enhancements in the QSK50 engine will help to reduce operating costs by 5%.
The QSK50 provides customers durability, better engine standard, and lower fuel consumption, thus providing an extended life before any repair for the Tier 4 Final QSK50 engine compared to the best-in-class Tier 2 engine.
Cummins Inc. is a leading worldwide designer, manufacturer and distributor of diesel and natural gas engines, electric power generation systems, and engine-related components, fuel systems, controls and air handling Systems.
The company faces stiff competition from Caterpillar Inc. (CAT - Analyst Report) and Navistar International Corporation (NAV - Analyst Report). Currently, the stock retains a Zacks #2 Rank, which translates into a short-term Buy rating.