Cummins Turbo to expand

100 jobs to be added, $11 million invested in new machinery at North Charleston plant

The automotive industry has been traveling down a rocky road, slammed by record-high fuel prices and slumping sales.

"But today we're going to talk about some good news," Jim Lyons, president of Cummins Turbo Technologies, said Tuesday.

While many auto-parts makers struggle, Cummins Turbo said it is expanding by adding 100 jobs and investing $11 million in new machinery at its turbocharger assembly plant off Ladson Road.

It was in July 2006 that the company, formerly known as Holset Turbochargers, began operations at its newly built North Charleston plant, which cost $13 million and created 180 jobs.

Lyons said his company was pleased to be able to exceed "the commitments we made two years ago," and that future investment in its Palmetto Commerce Park site is likely.

The division of Indiana-based Cummins Inc. says it is the world's biggest maker of diesel turbochargers, which inject compressed air into engines to add power while reducing emissions and improving fuel consumption.

The devices made in North Charleston are used mainly on medium- and heavy-duty trucks made in North America by Volvo, Detroit Diesel and other customers.

Lyons said sales of Cummins turbochargers have grown quickly in response to updated federal air emission rules that began to kick in several years ago. The next big set of changes comes in 2010, when off-road vehicles will be held to higher standards.

"We have the right product at a critical time," Lyons said.

Lyons said Cummins Turbo gained ground in its business when some of its rival manufacturers sought to fight the emissions changes rather than adapt to them.

"Instead of saying we can't and trying to convince the government we can't, we did it," Lyons said. "So when the new emission standards were implemented, we had a product."

Soaring diesel prices also are helping drive business to the local plant, said Jeff Stanton, Cummins Turbo's

worldwide manufacturing engineering director.

"Truck makers will slit your throat for a one-tenth-of-a-mile increase in fuel efficiency," Stanton said.

Lyons said other Cummins plants were considered for the expansion, but the Charleston region is closer to its customers. The local labor pool also played a role in the decision, as did the port, which the company uses to bring in the parts that make up its turbochargers.

"It was the total package," Lyons said.

The company said most of the workers it needs for the expansion have been recruited already. The starting hourly pay is about $13.

The expansion brings Cummins Turbo's total payroll in the region to about 750 workers. The company also has operations on Leeds Avenue in North Charleston.

Reach John McDermott at 937-5572 or jmcdermott@postandcourier.com.