Record success in China for Rolls-Royce

18 November 2020

Rolls-Royce business unit Power Systems has signed agreements for the delivery of a record number of MTU products, and two strategic partnership agreements, at the third China International Import Expo held in Shanghai, 5-10 November. Six Chinese companies have signed frame agreements for the delivery of almost 1000 MTU, Series 2000 and 4000, engines and systems for use in power generation and mining applications. In addition, Rolls-Royce signed strategic co-operation agreements with partners from the marine, power generation and mining industry.

The agreements on the delivery of MTU engines and systems are part of new purchasing framework agreements with the power generation companies Cooltech, Tellhow, Pauway, UNPower and SUMEC. The company inked a procurement framework agreement with Inner Mongolia North Hauler Joint Stock Co, a leading Chinese mining machinery manufacturer. The strategic co-operation agreements were signed with Jianglong Shipyard, Aulong Shipyard, VPower and SUMEC. 

Tobias Ostermaier, president Greater China, at Rolls-Royce Power Systems, said: “China is our most important growth market … in recent years, we have turned into a provider of integrated solutions for Chinese business partners”.

Rolls-Royce Power Systems reached a breakthrough in the Chinese marine market with the multi-party strategic partnership agreement with Jianglong Shipyard, Aulong Shipyard and VPower Group. Jianglong Shipyard is China’s leading designer and manufacturer of aluminum hull high speed vessels, a key market for MTU products. Aulong Shipyard is a joint venture of Austal and Jianglong. VPower Group is one of the world’s leading system integrators in the power generation sector and distributor for MTU products in China. The new strategic partnership will focus on MTU Series 2000 and 4000 engines.

Expanding market share and 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 from an engine manufacturer to a provider of integrated sustainable power solutions. Rolls-Royce has been producing MTU engines in China since 2006, and formed MTU Yuchai Power, a joint venture with Chinese diesel engine manufacturer Guangxi Yuchai Machinery Company, in 2017, which produces MTU Series 4000 engines for power generation in its plant in Yulin, Guangxi Province.

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