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Cummins Inc. and Scania CV AB announced that the companies have signed a joint venture agreement to produce fuel systems for heavy-duty on-highway trucks. Cummins-Scania XPI Manufacturing LLP is a 50-50 joint venture, which builds on Cummins-Scania partnerships on fuel systems development and manufacturing that date to January 1992. The initial investment in the new company is expected to be $31 million, split evenly between the partners. The first XPI systems will be produced in early 2006.

The two companies currently work together in Columbus, Ind. to produce the HPI fuel system, which eventually will be replaced by the XPI (Xtra-High Pressure Injection) system. The XPI common rail fuel system is expected to be manufactured by the joint venture company located at the Cummins Fuel Systems facility in Columbus and at the Cummins plant in Juarez, Mexico. Cummins CEO Tim Solso and Leif Ostling, president and CEO of Scania, signed the joint venture agreement at Cummins Columbus, Ind. headquarters.