Cummins to Sell Exhaust Business

Engine manufacturer Cummins, one of the largest companies on the market in its segment, announced today it planned to downsize its operations by selling the exhaust business. The official reason behind the decision is the need for Cummins to focus more on the emissions solutions business.

By selling the division, Cummins is, if you like, putting the spotlight on how the industry would evolve in the future. Exhausts, the iconic representatives of the high-polluting internal combustion engine age, will be replaced in Cummin's portfolio by the research of greener, less polluting technologies.

“It is more important than ever for CES to focus on our core business of providing aftertreatment systems and solutions for commercial vehicles,” said Srikanth Padmanabhan, Cummins Emission Solutions general manager.

“Selling the exhaust business to a strong buyer like Global Tube will enable us to focus on developing the technologies that will allow CES to continue growing in this vital market.”

The buyer of the Cummins exhaust operations, Global Tube, seems to disagree and still sees some future in this business. It will take over, after paying an undisclosed amount of money, the acoustic exhaust operations in Stoughton, Arcadia, Black River Falls, Viroqua (all in Wisconsin), Scoresby, Australia and Daman, India. The deal will be completed by the end of March, with no plans to cut the workforce announced.

“This is a very exciting opportunity for us to invest in a business which is central to our strategy and has significant opportunity for growth,” said Thomas Gosnell, Global Tube CEO.