The signing ceremony for the significant Cummins headquarters project in the Lin-gang Special Area is held on Sept 27. [Photo/WeChat account: shlgguanweihui]

The Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone and Cummins (China) Investment Co Ltd on Sept 27 signed an investment agreement – paving the way for international industrial giant Cummins Inc to build its China headquarters for hydrogen energy there.

Cummins is a US listed multinational corporation that designs, manufactures and distributes engines, filtration and power generation products. Last year it had global revenue of just under $20 billion.

Under the agreement, Cummins will locate its China hydrogen HQ, new energy research and development center and a manufacturing base in the Lin-gang Special Area.

The business will cover electrolysis water hydrogen production equipment reactors, fuel cell engines and core components, as well as high-pressure hydrogen storage bottle systems.

The construction process will reportedly be divided into two phases, with the first phase being put into operation in 2022, while the entire facility when fully ramped up will have an annual output value of 10 billion yuan ($1.55 billion).

"As a world-class free trade zone, the Lin-gang Special Area has a grand blueprint for the hydrogen energy industry, providing a strong and vibrant environment for enterprises to settle there," said Nathan Stoner, chairman of Cummins China, via a video link, at the signing cermony.

The project is the first global 500 headquarters project integrating R&D, manufacturing, trade and a supply chain in the special zone, according to Lin-gang officials.