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CMS Increases Cooperation with Chongqing Electromechanical

Jun 9, 2022 | Leading Companies in China | 0 comments

The American CMS Corporation (NYSE: CMI), which has been developing smoothly in China for the past 30 years, has recently further strengthened its cooperation in China. The company recently cooperated with Chongqing Electromechanical Co., Ltd. Renewed the joint venture contract of CCEC Engine Co., Ltd. (hereinafter referred to as CCEC), extending the 27-year joint venture cooperation between the two parties and further extending the period from 18 years to 2040.

  • CCEC obtained new products and will expand the factory

According to the information released by CCEC (China) Investment Co., Ltd. on May 17, CMS and Chongqing Electromechanical Co., Ltd. jointly announced the extension of the joint venture cooperation between the two parties. According to the newly revised and restated terms, the joint venture cooperation between the two parties will be extended to 2040. During this period, the parent companies will further work together to promote the sustainable development of the joint venture company, CCEC Engine Co., Ltd.

CCEC was established in 1995 with a registered capital of 417.6 million yuan. CCEC (China) Investment Co., Ltd. and Chongqing Electromechanical each hold 50% of the shares.

CCEC is the first engine joint venture established by American CMS in China. According to CCEC, CCEC has played a crucial role in meeting the diverse needs of China’s high-horsepower market. Based on the new contract terms, CCEC will introduce the QSK60 engine production platform to further expand its product matrix.


CCEC China’s promotion slogan said, “The highly acclaimed QSK60 is one of the most well-known high-horsepower engine products in the global market under CCEC. It is unique in power applications, providing power support for the booming data center industry.”

After inquiry, the CCEC QSK60 engine has been produced in the CCEC Wuhan factory for many years. The introduction of this engine by CCEC will help to achieve CCEC China’s proposal that “the domestic production of QSK60 will effectively shorten the delivery time, and have a more forward-looking understanding of customer needs. Better provide customers with customized support throughout the life cycle” goal.

  • CCEC has continued to increase investment in China recently

Nathan Stoner, vice president of CMS in charge of the business in China, said: “Localization and win-win partnership are the keys to CCEC’ success in China. In the face of tougher competition and market dynamics, we and Partners and other stakeholders share a common vision and trust each other, which will ensure our joint venture has the opportunity to gain insight into customer needs and gain a head start to capture more market opportunities.”

Zhang Fulun, chairman of Chongqing Electromechanical, said: “The cooperation between Chongqing Electromechanical and CMS has set an example for the industry. Facing the future, the signing of this joint venture cooperation agreement will inject a ‘strengthening shot’ into the development of CCEC . We will cooperate with CMS Sincerely cooperate and work together, we will accelerate the development of CCEC and jointly embrace a bright future.”

In this bright future, CCEC will, in accordance with the principle of reciprocity, make necessary optimizations to the corporate governance structure of CCEC, and introduce new resources to CCEC. At present, CCEC China disclosed that the new resource injected into CCEC is QSK60. More importantly, the two parties will also “concurrent with the introduction of new product platforms and the construction of new manufacturing and engineering capabilities.”

This means that the production line or workshop of CCEC will be expanded, which will undoubtedly give CCEC stronger competitiveness. According to the 2021 annual report of Chongqing Electromechanical, CCEC ‘ revenue in 2021 will be 3.126 billion yuan, with a net profit of 517 million yuan and a net profit margin of 16.53%. In 2020, CCEC’ revenue was 2.616 billion yuan, with a net profit of 496 million yuan and a net profit margin of 18.96%.

At the beginning of 2021, CCEC expected that its revenue in China would increase by roughly 6%-12%, but by the end of 2021, CCEC’ business in China had actually increased by 21%, hitting a record high. In the context of the new crown epidemic, this performance can be achieved, which undoubtedly further enhances CCEC’ confidence in increasing investment in China.

In September 2020, CCEC invested and built a “Hydrogen Energy China Headquarters” in Shanghai. The project will build CCEC Hydrogen Energy China Headquarters, New Energy R&D Center and Manufacturing Base, covering electrolyzed water hydrogen production equipment stacks, fuel cell engines Its core components, high-pressure hydrogen storage bottle system and other businesses, the project plans to achieve an output value of 10 billion yuan.

CCEC factory pictures
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CCEC Engine Co., Ltd. (CCEC) Development Memorabilia

the year 1995

CCEC was established as a joint venture.

year 2013

Chongqing Electromechanical and CCEC signed an agreement to establish CCEC high-horsepower engine technology research and development center and manufacturing base.


CCEC held the groundbreaking ceremony of the high-horsepower engine technology research and development center.


CCEC high-horsepower engine technology research and development center was officially put into use.


The new CCEC Lijia base was officially completed and put into use, becoming the most important high-horsepower engine manufacturing base in the world and the most advanced in China.

Chongqing Electromechanical and CMS will carry out more in-depth and extensive cooperation to promote the accelerated development of CCEC and jointly embrace a bright future!


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