In 2006, KAMAZ and leading global engine manufacturer Cummins founded the Cummins Kama joint venture, which will supply the Russian market with high-tech in-line four- and six-cylinder engines with a displacement of four to seven litres (140-300 horsepower) and in Euro-3, Euro-4 and Euro-5 environmental classes licensed by Cummins. Each partner has 50% of the shares in the joint venture's authorized capital.
The projected sales of these engines in the Russian Federation stand at 100,000 units each year, since Russia has to date lacked production of this engine class.
Cummins has three main production lines: diesel engines, diesel-engine driven generators, and spare parts for engines (such as filters, turbochargers, exhaust and fuel systems).
Cummins engines benefit from having low fuel consumption rates and conform to environmental standards for exhaust emissions. They also have a prolonged service life and adapt to Russian-made fuels and lubricants without any reduction in their operating life. Their use in KAMAZ vehicles enables enhanced competitiveness on domestic and foreign markets because their engine life is more than doubled and their service schedule is more than tripled. In addition to this, their fuel consumption has been reduced by over 15%, and their unladen weight by 200 kg, which provides a saving of 1,000-2,000 euros per year. The vehicles also benefit from a 2% noise reduction and increased ease of handling.
In addition, Cummins currently supplies these engines, manufactured by Cummins Kama in Russia to companies including: Likino Bus Plant (LiAZ), Pavlovo Bus Plant (PAZ), Kurgan Bus Plant (KAVZ), Cheboksary Industrial Tractor Plant (Promtraktor) and РСМ. Negotiations are in progress with the Minsk Automobile Plant (MAZ) and Moscow Automotive Enterprise Likhachyov Plant (AMO-ZIL).
The project's fundamental advantage is a high level of localisation. Assembly lines have been built and are being commissioned, as well as testing and painting equipment, production of half-finished base parts and equipment for the machining of base parts. Since it is productive and versatile, the equipment meets all state-of-the-art requirements.
Besides manufacturing engines, Cummins and KAMAZ are rapidly developing service and post-sale engine maintenance facilities.
Producing modern engines always entails considerable capital outlay, and the involvement of joint venture partners lessens the investment burden for each party. The total cost of the project, including extra-budgetary funds, is 2.7 billion roubles. The repayment period, including the construction of the facility, is 6.5 years. The number of jobs to be created is 930.
This project is a good example of effective international cooperation in high-tech technologies and also of the successful integration of a Russian company into the global auto industry.