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Friday, May 24, 2024

Cummins investing $580M at Rocky Mount plant, adding 80 jobs

Engine giant Cummins plans a $580 million expansion in Rocky Mount that will add 80 jobs, aided by tax incentives approved by the Nash County Commission.

The effort includes adding new equipment that will improve productivity and aid the Columbus, Indiana-based company’s plan to achieve zero emissions across its products. The county approved a 50% tax abatement related to Cummins’ investment.

“We are excited to be driving continued growth within Nash County and creating jobs that rely on high caliber technology for the future,” Plant Manager Steve Pinkston said in a release. “We need engagement from federal, state, and local governments like Nash County to achieve our goals and we are grateful for their support. When we receive engagement from local partners like this, it helps us move faster toward a more sustainable future.”

Cummins has built engines in Rocky Mount since 1983, where it employs about 2,000 workers. It has produced 5 million engines at the 1.3 million-square-foot plant, which is more than 1 million more than any other Cummins plant.

The site started as a joint venture with Case, but Cummins bought out its partner’s share in 2008.

“This investment is not just about engines; it’s a testament to our unwavering commitment to the community and our vision for a sustainable and impactful future,” said Pinkston. “It means [the plant]and Cummins are here to stay and we take pride in being the one of the largest employers in the tri-county area.”

The company is working on developing “fuel-agnostic” engines as it moves to reduce the carbon impact of its products and facilitate alternative fuel types.

There are no state incentives connected to the expansion, an N.C. Department of Commerce spokesman said.

Federal officials announced just before Christmas that the company had agreed to pay a $1.7 billion penalty to settle allegations that it “violated the Clean Air Act by installing emissions defeat devices on hundreds of thousands of engines.” The U.S. Department of Justice announcement said the devices were allegedly installed on 630,000 engines that went into Ram pickup trucks during model years from 2013 to 2019.

Cummins, which reported $33 billion in sales during the year ending Sept. 30, denied any wrongdoing. It said it expected a $2.4 billion charge in its 2023 fourth quarter results “to resolve these and other related matters involving approximately one million pick-up truck applications in the United States.”

The company’s market valuation is about $33 billion.

David Mildenberg
David Mildenberg
David Mildenberg is editor of Business North Carolina. Reach him at dmildenberg@businessnc.com.

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