Rolls-Royce Expands the Facility in Mankato, US
The new Rolls-Royce Power Systems' Logistics Operations Center in US represents $24M investment in Mankato. Expanded facility will more than double production of backup power systems used for critical infrastructure across the Americas
Rolls-Royce officially opened a new $24M, 250,000 sq. ft. Logistics Operations Center (LOC) in Mankato, Minnesota, USA, adjacent to its existing mtu power generation manufacturing facility. The expansion will allow Rolls-Royce to more than double production capacity for its mtu Series 4000 generator sets, – these engines are also produced in China with Yuchai – used to provide backup power for large-scale critical infrastructure across the Americas, including hospitals, airports, industrial sites and data centers. This investment is creating more than 100 local jobs, a nearly 20 percent workforce increase, making Rolls-Royce one of the largest manufacturers in Mankato.
The Words of Rolls-Royce CEO
Jörg Stratmann, CEO, Rolls-Royce Power Systems, said: “As demand for reliable, independent energy accelerates in the U.S., this investment enables Rolls-Royce to keep pace with the market and provide mission-critical backup power generation at a greater scale than ever before. Mankato plays an essential role in both the future of Rolls-Royce and U.S. manufacturing – the American-made generators built here power economic activity and critical infrastructure across the Americas.”
Adam Wood, Managing Director at Rolls-Royce in America said: “Rolls-Royce has a deep history in Mankato, and we are proud to demonstrate our continued commitment to grow in and with this community. From the beginning, providing essential power systems for local farmers, to today, where we are producing large-scale generators that support critical infrastructure across the country, the impact of our Mankato facility is defined by the people who keep it running, generation after generation.”
The new LOC provides additional capacity for logistics and assembly operations and was purpose built to support increased production of mtu Series 4000 generator sets. Approximately two-thirds of the Mankato LOC is dedicated to logistics operations, with the remaining space supporting production activities. The facility includes climate-controlled logistics and assembly areas, interior loading and unloading capabilities and room for future expansion as demand continues to grow.
Najwa Massad, Mayor, City of Mankato, said: “Rolls-Royce continues to be a tremendous multi-decade partner to Mankato. From groundbreaking to ribbon cutting, I’ve witnessed this $24 million investment in our community take shape, and I look forward to seeing its long-term impact with new high-skill jobs and business opportunities. This commitment from Rolls-Royce is exactly the kind of energy we need to keep our city’s economy growing.”
Catalina Valencia, Executive Director of Business Development, Minnesota Department of Employment and Economic Development, said: “Mankato is a hub for business and manufacturing, and we are very pleased to see a truly meaningful investment by Rolls-Royce in local jobs, industry, and community. This is about more than a new facility, it’s about expanding our ecosystem of skilled trades, supply networks, and production capabilities – keeping Minnesota attractive and competitive for the future.”
The Engines are From Aiken, South Carolina
The generator sets produced in Mankato use mtu Series 4000 engines that are built at the Rolls-Royce facility in Aiken, South Carolina, where Rolls-Royce announced a $75M capital investment in July 2025.
The Mankato investment, first announced in June 2025, is expected to increase production capacity for mission-critical backup power systems by more than double by the end of 2026. Today, Rolls-Royce backup power systems support more than 25 percent of U.S. data centers, alongside other critical infrastructure, providing always-on power without impacting local energy grids.
The expanded facility will help meet growing demand from customers across healthcare, transportation, industrial, data center, and other critical infrastructure sectors, where reliable backup power is essential to maintaining operations and supporting economic growth.
The expansion builds on more than $1.5B invested by Rolls-Royce in the U.S. over the past decade. Across 34 locations in 26 states, Rolls-Royce employs more than 5,000 Americans and supports more than 1,000 U.S. suppliers.
