Recreational boating had proving an increasingly valuable segment for the company

Cummins has officially launched a new R350-million (£18.1-million) regional office outside Johannesburg, the company announced this week.

The 15,355 m2 premises, dubbed ‘Power Hub” and situated in Midrand between Johannesburg and Pretoria, consolidates the company’s various South African services and business units, South Africa’s Engineering News reports. The launch is the culmination of a three-year project.

“The facility represents the power behind a global organisation that is able to continue to invest in the region and signals our long-term intentions in the region,” said Cummins Southern Africa MD Racheal Njoroge at the launch function.

CEO Tom Linebarger said the new hub illustrated the company’s confidence in both South Africa and Africa. “We invest in Africa during the good times, and during the bad times,” Linebarger said.

The ‘Power Hub’ centralizes previously separate company services and operations, namely the Cummins Southern Africa regional headquarters, the Master Rebuild Centre (MRC), the Africa Learning Centre and Gauteng Operations. “The central hub will provide power solutions to customers across the Southern African region and brings together the company’s technical expertise from mining, power systems, automotive and technical training,” Engineering News reported.

Cummins Distribution Business president Tony Satterthwaite said the new facility was expected to produce a 30% increase in technical training, up from 1,300 people last year in the old training facility. It will also accommodate a 3,500hp AVL Dyno Test Cell, a precision-driven spray booth, a water purification plant and a wastewater treatment system.

Last year Cummins said recreational boating had proved an increasingly valuable segment of the company’s revenue and volume during the slump in the commercial offshore segment.

Cummins Africa Middle East Marine Segment leader Andy Pilkington told IBI the Cummins QSB6-7 engine, a big seller in the recreational sector – also available in both propulsion and marine auxiliary for other maritime segments – had displaced the company’s larger commercial models as the highest revenue engine.