Rolls-Royce and Yuchai to Expand MTU Engine Production in China through Joint Venture

Rolls-Royce and Yuchai to Expand MTU Engine Production in China through Joint Venture

(IN BRIEF) Rolls-Royce and Yuchai Diesel are expanding their joint venture, MTU Yuchai Power, to increase production of Rolls-Royce’s mtu engines in China. The expansion will include more variants of the mtu Series 2000 and 4000 engines, with plans to produce these engines for power generation and the oil and gas industry starting in the second half of 2025. This partnership aims to enhance product offerings, increase market share, and tap into new markets in the region, while also supporting further investment in research and development.

(PRESS RELEASE) LONDON, 14-Aug-2024 — /EuropaWire/ — Rolls-Royce and Chinese engine manufacturer Guangxi Yuchai Machinery Co. Ltd (Yuchai Diesel) are set to expand their joint venture, MTU Yuchai Power, to enhance the production of Rolls-Royce’s mtu engines. The expanded partnership will see an increase in the manufacturing capabilities at the Yulin-based joint venture, with plans to include more variants of the mtu Series 2000 and 4000 engines, tailored for China and neighboring regions.

The joint venture, which has primarily focused on producing mtu Series 4000 engines for power generation, will now also manufacture these engines for the oil and gas industry. Additionally, mtu Series 2000 engines for power generation and the Yuchai VC engine will be added to the production line starting in the second half of 2025.

The expanded collaboration aims to offer an enhanced product portfolio, boost market share, and tap into new markets, particularly within the power generation sector—a strategic priority for Rolls-Royce Power Systems. To support these goals, both companies will increase their investment in MTU Yuchai Power and further strengthen research and development efforts.

The joint venture between Yuchai Diesel and Rolls-Royce Power Systems was originally established in 2014. In April 2018, MTU Yuchai Power produced its first mtu Series 4000 engine, marking a significant milestone in China’s high-end high-speed diesel engine market for power segments exceeding 1,400 kW. Since its inception, the joint venture has manufactured over 2,000 mtu engines.

MTU engines produced by MTU Yuchai Power have gained a strong foothold in the regional market for high-end power generation, particularly for emergency power supply in critical industries such as data centers and semiconductor factories across China, South Korea, Singapore, and Indonesia.

Dr. Jörg Stratmann, CEO of Rolls-Royce Power Systems, expressed his enthusiasm for the expanded partnership: “I am delighted that we are deepening our successful and proven cooperation with Yuchai. Building on the solid foundation and experience of our joint venture, we will capitalize on the resulting opportunities and jointly tap into the enormous potential available to us in this region by combining the expertise of both partners. We can offer our existing customers an expanded product program and attract new ones by demonstrating the real added value of our product range.”

Li Hanyang, Chairman of Yuchai Machinery Co., Ltd., highlighted the importance of the partnership within the broader context of China’s manufacturing sector: “China places great importance on the development of its manufacturing industry. Both the national and Guangxi governments have introduced numerous supportive policies, which have enabled the partnership between Rolls-Royce and Yuchai to achieve remarkable success in just ten years, successfully building the high-quality platform of MTU Yuchai Power.”

About Rolls-Royce Holdings plc

1. Rolls-Royce develops and delivers complex power and propulsion solutions for safety-critical applications in the air, at sea and on land. Our products and service packages enable our customers to connect people, societies, cultures and economies together; they meet the growing need for power generation across multiple industries; and enable governments to equip their armed forces with the power to protect.
2. Rolls-Royce has a presence in 48 countries and customers in more than 150, comprising over 250 commercial large aero engine customers, 160 armed forces and navies and approximately 40,000 active Power Systems customers. We are committed to becoming a net zero company by 2050 and we support our customers to do the same.
3. Annual underlying revenue was $20.79bn in 2023, underlying operating profit was $2.16bn and free cash flow $1.75bn.
4. Rolls-Royce Holdings plc is publicly traded company (LSE: RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69).

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SOURCE: Rolls-Royce plc