) announced the acquisition of the assets of Selective catalytic
reduction (SCR) doser technology from Hilite International. The
acquisition of the emission control product will be completed in
the third quarter of 2012, subject to the German regulatory
SCR doser technology enhances the performance and durability of
the SCR aftermarket systems. With this acquisition, Hilite's SCR
doser technology will be included in Cummins Emission Solutions
The government has strict regulation regarding emission control.
Over time, the rules regarding the amount of release of oxides of
nitrogen, carbon monoxide and hydrocarbons in the atmosphere have
been made stringent. The rules are also implemented in the emerging
markets of China, India, Brazil and Russia.
Controls, sensors, dosers, catalysts and substrates, and
packaging are the subsystems of aftermarket systems. The
performance of the engine system depends on the proper integration
of these subsystems.
Hilite, based in Germany, has been growing under 3i's
leadership. Its technology will be complementary for Cummins
internal development strategies and aftermarket components of
growth. The new deal will add 150 employees to Cummins' worldwide
Cummins Inc. is a leading worldwide designer, manufacturer and
distributor of diesel and natural gas engines, electric power
generation systems, and engine-related components, fuel systems,
controls and air handling Systems.
The company is well positioned to benefit from geographic
diversification and leadership position in many of the end markets.
New emission standards, fuel economy improvement and favorable
trends for its Power Generation business will contribute to the
However, the company faces stiff competition from
). Currently, the stock retains a Zacks #2 Rank, which translates
into a short-term Buy rating.
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