Hyundai Heavy Industries and Cummins have completed work on their joint factory, which once opened will be capable of building 50,000 diesel engines per year, the result of a 2012 agreement.

The Hyundai Cummins Engine Company hopes to achieve annual sales of 500 million by 2020, which will create around 3,700 direct and indirect jobs in the region. The factory was built with investment of $98 million (KRW 100 billion).

For HHI, the joint engine factory will give its construction equipment division a stable supply of high-quality engines that are essential for improving the performance and quality of its construction equipment.

At the ceremony, Lee Jai-seong, Chairman and CEO of HHI, spoke of the factory’s positive impact on the Daegu area.

“I would like to extend my sincerest appreciation to Daegu Metropolitan City and its citizens for their strong support to make today’s inauguration ceremony possible. It is our belief that when HCEC engine factory goes into operation, it will play an active role in galvanizing the local economy.”