Rolls-Royce and Yuchai intensify their partnership

The two companies have laid another milestone ten years after the beginning of their partnership. Yuchai Diesel and the Rolls-Royce Power Systems division established their joint venture with the partnership agreement in 2014. In April 2018, the first mtu Series 4000 engine produced by MTU Yuchai Power left the assembly line in Yuchai, filling the gap in China’s high-end high-speed diesel engine market for power segments above 1400 kW. Since then, the joint venture has already produced more than 2000 mtu engines.

Aims and purposes of the agreement between Yuchai Diesel and Rolls-Royce

Rolls-Royce and Chinese engine manufacturer Guangxi Yuchai Machinery (Yuchai Diesel) are expanding the activities of their joint venture MTU Yuchai Power to produce Rolls-Royce brand mtu engines. The joint venture in Yulin (China), which has so far focussed on mtu Series 4000 engines for power generation, is also expected to manufacture mtu Series 4000 engines for the oil and gas industry, mtu Series 2000 engines for power generation and the Yuchai VC engine from the second half of 2025. The aim of the intensified cooperation is to offer their customers an improved product portfolio, increase market share and open up new markets – particularly in the field of power generation, a strategic focus of Rolls-Royce Power Systems. To this end, the partners will invest more in MTU Yuchai Power and expand research and development.

Some comments

Jörg Stratmann, CEO of Rolls-Royce Power Systems, said: “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 capitalise 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 programme and convince new ones of our product range, which will bring them real added value.”

Li Hanyang, Chairman of Yuchai Machinery said that 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 make remarkable achievements in just ten years, successfully building the high-quality platform of MTU Yuchai Power.