Cummins Inc bolsters Middle East distribution with Cummins Arabia

New venture stems from long-standing relationship between Cummins Inc and The Olayan Group


Engine giant Cummins Inc has joined forces with The Olayan Group, a Saudi Arabian investment and manufacturing firm, to create Cummins Arabia, a distribution venture in the Middle East.

The fifty-fifty-split joint venture will distribute products in the United Arab Emirates (UAE), Saudi Arabia, and Kuwait, markets currently covered by Cummins and Olayan-owned distributors.

According to Cummins, the move will allow it to be closer to its consumer base in the region and provide an opportunity to train and employ nationals in each country.

"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," Cummins Inc chairman and CEO Tom Linebarger says.

"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."

For Olayan, the new deal will bolster its product range, CEO Lubna Olayan says.

"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," he says.

The deal also cements a long standing relationship between the two companies.

"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," Olayan says.

"We began distributing Cummins products in Saudi Arabia in 1956 and have always viewed ourselves as operating in a real spirit of partnership."

To be completed by the second half of 2016, the venture will have its headquarters in Saudi Arabia.

Plans for dedicated facilities to be built are underway, the companies say.



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