MTU and Guangxi Yuchai Machinery Company form JV

MTU Friedrichshafen and Guangxi Yuchai Machinery Company will set up a 50/50 joint venture to manufacture MTU diesel engines in China. MTU Friedrichshafen, a subsidiary of Rolls-Royce Power Systems, and Guangxi Yuchai Machinery (GYMCL), part of China Yuchai International Limited, will each invest €10.5 million in the joint venture. The joint venture will be based at Guangxi’s primary manufacturing facilities in Yulin City in Guangxi Province, southern China. Production is expected to start in 2017 and
February 19, 2016 Read time: 2 mins
7648 MTU Friedrichshafen and 5389 Guangxi Yuchai Machinery Company will set up a 50/50 joint venture to manufacture MTU diesel engines in China.

MTU Friedrichshafen, a subsidiary of Rolls-Royce Power Systems, and Guangxi Yuchai Machinery (GYMCL), part of China Yuchai International Limited, will each invest €10.5 million in the joint venture.

The joint venture will be based at Guangxi’s primary manufacturing facilities in Yulin City in Guangxi Province, southern China. Production is expected to start in 2017 and include MTU Series 4000 diesel engines compliant with China Tier 3 emission standards. Power outputs will range from 1400-3490kW. The engines will be primarily for the Chinese off-highway market, in particular for power generation and oil & gas applications.

The engines will be marketed by GYMCL and MTU Suzhou within China and by MTU and its subsidiaries exclusively outside China.

From 2020, the sales territory of GYMCL will extend to South East Asia, including Vietnam, Thailand and Malaysia.

A written statement said within 3-5 years the owners hope to start joint research and development work as well as direct sales from the joint venture to customers.

China Yuchai International Limited, through its subsidiary Guangxi Yuchai Machinery Company Limited, engages in the manufacture, assembly, and sale of a wide variety of light-, medium- and heavy-duty engines for trucks, buses, passenger vehicles, construction equipment, marine and agriculture applications in China. GYMCL also produces diesel power generators. The engines produced by GYMCL range from diesel to natural gas and hybrid engines.

In 2015, GYMCL sold 364,567 engines and is recognized as a leading manufacturer and distributor of engines in China. For more information, please visit http://www.cyilimited.com.

Rolls-Royce Power Systems, headquartered in Friedrichshafen, 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.

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