Cummins is sending 100 jobs now in Memphis to a plant in Mexico and refurbishing the local plant to rebuild diesel superchargers.
The Commercial Appeal quoted company spokesman Mark Land, who said the rebuilding of other parts, including water pumps and air compressors, will be moved to San Luis Porosi, Mexico.
Land said the moves aren't just to lower labor costs, but to gain efficiency.
The newspaper reported the jobs will be moved starting July 30 and continue in phases through late October or into November.
The moves will still leave about 1,400 employees of Cummins and its contract workers in the Memphis area.
The decision doesn't affect a parts warehouse and distribution facility or regional parts distributor Cummins Mid-South LLC.