US-based designer and manufacturer of engine, power-generation equipment and related technologies Cummins has a vision of achieving $2-billion in sales and leading market share positions in Africa by 2020

on the back of key markets in Africa expanding and power generation expected to grow to $6-billion, mining to $1-billion and filtration to $500-million by 2020.

The company recently established its Africa corporate headquarters, in Woodmead, Johannesburg, and Cummins president and COO Tom Linebarger says it intends opening regional and country offices across the continent as well as distributor services and sales offices to enhance its service, support and sales.

Cummins perceives Africa as ‘the next big market’ and intends, long-term, to move all its business offerings to the continent. It aims to grow its African business by four times in five years, for which it has laid out a four-point strategy. This includes achieving a leading market position in power generation, mining and filtration in African markets, where there is already strong demand and the company has good products and services in place.

The strategy also involves differentiating itself through service and customer support networks by placing resources closer to customers (whereby it will also be supporting local engineering companies and original-equipment manufacturers trying to access the rest of Africa), talent acquisition and development of mainly local people, and improving communities through corporate responsibility.

Localised manufacturing is also on the agenda for the African strategy and will be driven by increased regional trade and greater demand for locally manufactured equipment. The company expects the latter to improve significantly in the next five years.

Of its 1 100 employees in Africa, the major- ity are based in South Africa, which it believes will serve as a good base to access the rest of the continent. Cummins operates 25 facilities in Africa and has yearly sales of about $264-million. Southwick says it will set up regional and country offices in Morocco, then Senegal and Nigeria, this year, including technical support and training centres.

Cummins’ products and technologies are used in mining, engineering and infrastructure building and it believes this offering could help drive local economic growth.

Africa executive director Brady Southwick says Cummins has invested millions of dollars in developing emissions technology and fuel efficiency in its products – a fact he believes differentiates it in the local market.

Linebarger says the company spends between 3% and 4% of its sales on research and development (R&D). This year, it expects to generate about $17-billion in sales while the R&D spending is mostly on emissions and fuel efficiency technology.

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