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Rolls-Royce subsidiary MTU Friedrichshafen and Guangxi Yuchai Machinery officially register joint venture

MTU Yuchai Power Co. Ltd. is now in place – a joint venture between MTU Friedrichshafen and the Guangxi Yuchai Machinery Company Ltd. (GYMCL) to build large MTU-brand diesel engines in China. Recently instituted, MTU Yuchai Power Co. Ltd. has now been officially entered in the Chinese trade register. MTU Friedrichshafen, a Rolls-Royce Power Systems subsidiary, and GYMCL, a subsidiary of China Yuchai International Ltd., first agreed to forge the partnership in February 2016.

Yan Ping, Chairman of Guangxi Yuchai Machinery Company, and Andreas Schell, President of the Power Systems division of Rolls-Royce, came together to unveil the company logo and celebrate the establishment of the joint venture. For both companies, it is a milestone development that will enable them to anchor their position in new markets and sharpen their competitiveness.

The mission of the joint venture, based in Yulin in southern China where GYMCL’s headquarters is located, will be to build engines of version 03 of MTU's highly successful Series 4000. This unit is suitable for use in the oil and gas and power generation industries. Production machinery with the capacity for delivering up to 1500 engines per year is currently being procured and will be set up in Yulin. General Manager of the joint venture is Sebastien Jin, who previously headed Business Development in China for MTU.

“Yuchai, with its technological prowess, sales network, and production potential is seen by Rolls-Royce Power Systems as the ideal partner for its MTU brand,” said Andreas Schell during his visit to Yulin. Schell added that he firmly believes that the MTU Yuchai Power joint venture promises to be the start of a long-lasting partnership of great potential, and that by joining forces, both partners will have everything it takes to be successful in the Chinese market.

Yuchai’s Chairman Yan Ping also sees the joint venture as highly significant to his business. “Both partners stand to reap huge benefits from this enterprise, which fully accords with the overall strategy of Guangxi Yuchai Machinery Company,” he said. Ping emphasized that his business was ready to deepen its connections with MTU and explore new paths.

Press photos are available for download from

About Rolls-Royce Holdings plc

1. Rolls-Royce’s vision is to be the market-leader in high performance power systems where our engineering expertise, global reach and deep industry knowledge deliver outstanding customer relationships and solutions. We operate across five businesses: Civil Aerospace, Defence Aerospace, Marine, Nuclear and Power Systems.
2. Rolls-Royce Power Systems is headquartered in Friedrichshafen in southern Germany and employs around 10,000 people. The product portfolio includes MTU-brand high-speed engines and propulsion systems for ships, power generation, heavy land, rail and defence vehicles and for the oil and gas industry. Under the MTU Onsite Energy brand, the company markets diesel gensets for emergency, base load and peak load applications as well as cogeneration plants using gas engines for the combined generation of heat and power. Bergen medium-speed engines power ships and power generation applications. L’Orange completes the portfolio with fuel injection systems for large engines.
3. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 4,000 marine customers including 70 navies, and more than 5,000 power and nuclear customers.
4. We have three common themes across all our businesses:

• Investing in and developing engineering excellence.
• Driving a manufacturing and supply chain transformation which will embed operational excellence in lean, lower-cost facilities and processes.
• Leveraging our installed base, product knowledge and engineering capabilities to provide customers with outstanding service through which we can capture aftermarket value long into the future.

5. Annual underlying revenue was £13.8 billion in 2016, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £80 billion at the end of 2016.
6. In 2016, Rolls-Royce invested £1.3 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.
7. Rolls-Royce employs 50,000 people in more than 46 countries. More than 16,000 of these are engineers.
8. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2015 we employed 228 graduates and 277 apprentices through our worldwide training programmes.

Source: Rolls-Royce Power Systems AG

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