Cummins, Inc., and Grupo Laeisz announced Thursday a joint-venture partnership to distribute and service Cummins engines, generators, and parts in a region that includes Costa Rica, El Salvador and Honduras. The new joint venture, to be called Cummins Centroamérica, will be an 80-20 percent joint venture.
The joint venture announced today creates the foundation for both partners to significantly expand in the equipment market in Central America, where strong, steady growth is projected, said Cummins.
The agreement was signed in Honduras by Bernardo Hirsch, president of Grupo Laeisz, and representatives of Cummins.
Laeisz has been a Cummins distributor in Honduras for more than 40 years, with subsequent expansion into El Salvador and Costa Rica. The new joint venture will include both Cummins brands and products from Ingersoll Rand Air Solutions Group, which are considered complementary and non-competitive with Cummins lines. Laeisz will also continue to sell other brands that are non-competitive with Cummins or the joint venture under their existing business, though all facilities will bear the Cummins brand.
Cummins is headquartered in Columbus, Indiana, and employs approximately 44,000 people worldwide and serves customers in approximately 190 countries.