Yahoo Finance Cummins (CMI) to Invest $1B Across US Manufacturing Sites
Cummins CMI announces to invest $1 billion across its manufacturing sites in North Carolina, Indiana and New York. This investment will be utilized to upgrade those manufacturing sites to support fuel-agnostic engine platforms that run on low-carbon fuels, including diesel, natural gas and eventually hydrogen.
The investment includes a $452 million outlay to upgrade its 998,000-square-foot facility at the Jamestown Engine Plant in Western New York. At this facility, Cummins plans to produce a fuel-agnostic internal combustion engine platform. Walmart, Werner, Matheson and National Ready Mix are some of Cummins’ customers that will start testing the engines of the fuel-agnostic platform, the X15N. Walmart will receive the test unit later in April.
In a few weeks, the American engine manufacturer will start manufacturing an essential piece of technology called electrolyzer to produce green hydrogen that will help decarbonize the U.S. economy. The Bipartisan Infrastructure Law and Inflation Reduction Act are crucial in the company’s decarbonization efforts.
With the production of electrolyzers in Minnesota and investments in Indiana, North Carolina and New York facilities, Cummins has taken a dual-path approach and will work toward advancing engine-based and zero-emission solutions. The company believes that this approach is suitable for its stakeholders and will create a positive impact on the planet.
Cummins' zero-emission technology brand, Accelera by Cummins, in Fridley, Minnesota will soon start manufacturing electrolyzers. These electrolyzers will produce hydrogen that can be used to power hydrogen fuel cell vehicles and in the production of steel. Building electrolyzers in Minnesota is a $10 million investment and an important step towards bringing the supply chain for zero-emissions vehicles to the United States. Starting Apr 24, out of Cummins Power Systems’ 1.1 million square foot facility, 89,000 square feet will be dedicated to the production of electrolyzers.
Zacks Rank & Key Picks
CMI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few top-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, Modine Manufacturing Company MOD and Wabash National Corporation WNC, all of which sport a Zacks Rank #1.
Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimates for GELYY’s 2023 sales and earnings imply year-over-year growth of around 57.5% and 7.4%, respectively.
Modine operates primarily in a single industry of manufacturing and selling heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales implies year-over-year growth of roughly 11.4%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of around 13.1% and 28.9%, respectively.
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Cummins Inc. (CMI) : Free Stock Analysis Report
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