Rolls-Royce continues growth course in China
By Jack Burke09 November 2021
Covers four industrial sectors in China
Rolls-Royce business unit Power Systems has signed agreements with Chinese partners that will mean the delivery of several hundred mtu engines and power generation systems.
The orders come from four industrial sectors: power generation, construction and industrial (C&I), mining and rail. The agreements were announced at the fourth China International Import Expo (CIIE).
For the power generation sector, Power Systems signed letters of intent with Chinese customers EPG and SUMEC. EPG intends to procure 300 mtu diesel systems based on mtu Series 4000 engines. These mtu gensets are to be manufactured in China. SUMEC plans to order mtu diesel engines as well as mtu diesel and gas gensets. On the C&I and mining side, Power Systems signed purchasing framework agreements with XCMG for the delivery of 45 mtu Series 2000 and 10 Series 4000 engines for both applications. Beijing Chaotiefubang Tech Development Co. Ltd. ordered 20 mtu Series 1500 engines for use in trains – one of the first orders for these engines for the rail application.
“China is the most important growth market for us,” said Eugenia Valente, president, Rolls-Royce Power Solutions Greater China. “The fact that Chinese customers and partners from such a wide range of industries put their trust in our mtu solutions makes us proud. And it proves that our investments, focus on building long-term partnerships in China and our “local-for-local” approach for localization are the right strategy, benefitting both Rolls-Royce and our Chinese partners. As a provider of integrated solutions for power and propulsion, we strive to support the country’s economic growth and infrastructure development. We also look forward to supporting China’s journey towards decarbonization with our sustainable solutions.”
Rolls-Royce also signed an agreement with mtu Yuchai Power Co. Ltd., the joint venture between Rolls-Royce and Guangxi Yuchai Machinery Co. Ltd. The company will continue to manufacture mtu Series 4000 engines in China for power generation in its plant in Yulin, Guangxi Province.
Rolls-Royce has been producing mtu engines in China since 2006. It recently opened a new test bench at its location in Suzhou. With this new addition, Rolls-Royce’s localization strategy in China is now covering the whole process ranging from sales and services to manufacturing and R&D.