MTU Friedrichshafen GmbH, a subsidiary of Rolls-Royce Power Systems, and China Yuchai International Limited’s main operating subsidiary, Guangxi Yuchai Machinery Company Ltd. (GYMCL), have signed an agreement to set up a 50/50 joint venture for the production — under license from MTU — of MTU diesel engines in China. Each party will invest approximately €10.5 million in the joint venture, which will be based at GYMCL’s primary manufacturing facilities in Yulin City, Guangxi Province, in south China.
The joint venture will produce MTU Series 4000 diesel engines compliant with China Tier 3 emission standards with power outputs ranging from 1400 to 3490 kW, primarily for the Chinese off-highway market, in particular for power generation and oil & gas applications. Production is scheduled to commence in 2017 and ultimately, MTU said there will be capacity for as many as 1500 engines a year, with components produced in Germany and China.
It will mark the third manufacturing site for MTU Series 4000 engines, including Friedrichshafen, Germany, and Aiken, South Carolina, U.S.A.