MTU unveils diesel engine joint venture in China

A new company has been formed between German and Chinese firms to build large diesel engines in China.

MTU Yuchai Power Co is a joint venture between Rolls-Royce Power Systems subsidiary MTU Friedrichshafen, and the Guangxi Yuchai Machinery Company, which is part of China Yuchai International.

The new enitity was unveiled by Yan Ping, Chairman of Guangxi Yuchai Machinery, and Andreas Schell, President of the Power Systems division of Rolls-Royce, who both called the formation “a milestone development”.

The joint venture will be based in Yulin in southern China where GYMCL’s headquarters is located. It will build engines of version 03 of MTU’s Series 4000. This unit is suitable for power generation as well as the oil and gas industries.

Schell said that he believes that MTU Yuchai Power “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 added that “both partners stand to reap huge benefits from this enterprise”.

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