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Cummins has relocated to a larger distribution hub in Shanghai to strengthen its local supply chain capabilities and support the international growth of China’s auto supply sector.
The new facility is situated in Pudong New Area and spans 30,000 square meters, significantly larger than the previous 12,000-square-meter site, the company announced recently. This expansion also includes a new parts support center aimed at helping Chinese automakers expand globally, along with a supply chain solutions design center.
These three new centers will be managed by the company’s supply chain division, CCSC Technologies. According to Chen Hua, the head of the Shanghai-based subsidiary, the division’s sales have soared from CNY 1 billion to CNY 4.6 billion over the last ten years. As a result, the operational capacity of their previous distribution center had to be doubled to meet growing market demand.
The company first established its distribution center in China in 1999 to manage imported parts for the domestic market. Over time, its focus shifted toward supporting the increasing number of Chinese supply chains expanding internationally amid rising local manufacturing.
With a global footprint of over 500 distribution centers and 5,200 dealerships across more than 190 countries and regions, the company boasts extensive operational expertise. This experience enables it to deliver reliable after-sales support and parts supply for Chinese automakers venturing abroad.
Beyond aiding vehicle manufacturers in their international pursuits, the new distribution center will also support Chinese parts suppliers in transforming, upgrading, and expanding their presence overseas. The company has assisted more than 40 Chinese suppliers in entering markets such as Mexico and Southeast Asia, with these firms demonstrating strong competitive advantages.
Since entering China in 1975, the company has invested over USD 1 billion, setting up more than 20 manufacturing plants along with its largest R&D center outside the U.S. Last year, its sales in China surpassed USD 6.5 billion, representing roughly 19% of its global revenue.
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