Rolls-Royce Continues China Growth Strategy

Rolls-Royce said it is moving forward with its growth strategy in China despite the challenges posed by COVID-19.

VPower Group, one of the world’s leading system integrators in the power generation sector, has become a new distributor for MTU products in China. The company has been integrating MTU engines and systems for more than 10 years into their customer solutions. The new distribution agreement covers the sales and maintenance of MTU engines and gensets for marine commercial and gas power generation.

Based in Hong Kong, VPower Group has been a close partner of Rolls-Royce for many years and has already integrated around 3 GW (equivalent to more than 1000 engines) of MTU power products into its power solutions around the world, backed by its R&D, application and service teams to support global demand. Currently, VPower Group is a leading engine-based distributed power station owner and operator with successful projects in many countries. VPower Group provides solutions for natural gas, biogas, LNG, CHP, ORC and offshore vessels.

“We are delighted to be taking our successful and close relationship with VPower Group to a new level and welcome our partner as an integral part of our global distribution network,” said Tobias Ostermaier, president MTU Greater China, Rolls-Royce Power Systems. “VPower Group brings expertise and the capacity to package turnkey gas power projects in China and, most importantly, a strong network in the marine industry that will support our market share expansion in China. Together with VPower Group, we want to make MTU the brand of choice for engines and systems in the Chinese commercial shipping and gas powergen segments and realize the significant growth potential in these market segments.”

Samson Lam, Chairman of VPower Group, said that both gas power generation and commercial shipping applications in China offer great growth potential and the company wants to “exploit that potential together with Rolls-Royce as well as to co-develop the LNG marine market.”

In addition to its new role as distributor, VPower Group will continue to integrate and sell MTU gas systems as part of its own solution offering. The relationship between Rolls-Royce and VPower Group has been in place since 2008 and has developed steadily over the years. Today, VPower Group is the world’s largest operator of MTU power generation systems with a wide range of applications in China and other countries. In particular for the marine sector, VPower Group has ordered dozens of MTU engines for liftboats, fire boats, command and tourist vessels.

Expanding market share, establishing and deepening partnerships in China are key to the success of the PS 2030 strategy, under which Rolls-Royce Power Systems is currently transforming itself from an engine manufacturer to a provider of integrated power solutions. Rolls-Royce has been producing MTU engines in China since 2006. In addition, Rolls-Royce formed MTU Yuchai Power, a joint venture with Chinese diesel engine manufacturer Guangxi Yuchai Machinery Co., in 2017. The company produces MTU Series 4000 engines for power generation in its plant in Yulin, Guangxi Province.