Independent Cummins Qatar in for long haul
Cummins says that it is in for the long haul in Qatar as it continues to develop its JV with Jaidah Heavy Equipment. The US-based engine and generator manufacturer Cummins Inc and local equipment player Jaidah launched a JV, Cummins Qatar, recently to service the growing demand in Qatar. Jaidah had represented Cummins for […]
Richard Quenniche said that Cummins will use its know-how with local expertise.
Cummins says that it is in for the long haul in Qatar as it continues to develop its JV with Jaidah Heavy Equipment.
The US-based engine and generator manufacturer Cummins Inc and local equipment player Jaidah launched a JV, Cummins Qatar, recently to service the growing demand in Qatar.
Jaidah had represented Cummins for 20 years in the country, but the two companies decided to make the change from a traditional dealer/distributor model to a fully functioning solution provider, officially opening for business in January.
The company will be in full control of the business transactions which was previously looked upon by Jaidah Group. With thousands of installed engines already in Qatar, Cummins Qatar is now working independently and will render full range of Cummins’ products and services.
“It is a 51/49 percent venture with Jaidah having the 51 percent. Cummins will use its own management resources to manage the joint venture,” Rachid Ouenniche Cummins managing director of distribution for the Middle East said recently. “We call it the Cummins operating system. So we will use Cummins tools and Cummins experience to manage the business.”
Tim Worme, general manager of Cummins Qatar, described the new company to CMME at Project Qatar as a natural fit for both Cummins and Jaidah. While still in a “growth phase”, the company plans to expand its operation, opening a new facility that will become its sales and service hub.
“We’re not just planning for the World Cup, we’re planning for the next 25 years,” he told CMME. “We’re building on the local knowledge we have and strong, our existing base.”
The JV is concentrating much of its effort into power generation solutions. While Qatar is not exactly underserved by power solutions, Worme says all the system components are designed to work together as a whole.
“That’s the power of one. We’re different from many of the other companies here,” he affirmed.
While the JV business set up is a first for Cummins in the Middle East, Worme said Cummins has built up experience globally with similar arrangements with local partners and understands, “leveraging local capability.”
“This is a big opportunity and we have high expectations.”
