MTU JV To Build Engines In India
By Mike Osenga20 March 2018
Rolls-Royce Power Systems and Pune, India-based vehicle manufacturer Force Motors have signed an agreement on an engine manufacturing joint venture to produce MTU’s 10- and 12-cylinder Series 1600 diesel engines. The 1600 Series has outputs from 545 to 1050 hp (400 to 800 KWm) and are applicable in power generation and rail underfloor applications.
The new joint venture will be called Force MTU Power Systems Pvt. Ltd. Force Motors will hold a 51% stake and Rolls-Royce Power Systems 49%. Besides manufacturing Series 1600 units, the JV will also build Series 1600 generator sets for the Indian and global markets. Overall, the parties are investing more than €40 million euros in the JV in proportion to their respective stakes.
The new venture will build a dedicated manufacturing facility at Chakan near Pune. The facility is to operate as a stand-alone enterprise. The new factory is expected to launch serial production by the third quarter of 2019. The JV will use Force Motors’ expertise to lead localization efforts. The first MTU Series 1600 engine are expected to be delivered in summer 2019.
Generator sets built and supplied by the JV to customers in India, Nepal and Sri Lanka will carry the Force – MTU brand, while those targeted for the rest of the world will be sold under the MTU Onsite Energy brand. The engines will continue to carry the MTU the brand.
The JV will handle sales and service of Series 1600 generator sets for end users in India, Nepal and Sri Lanka territory, while Rolls-Royce Power Systems will handle sales and service in the rest of the world.
“Once serial production capabilities for 1600 units have been established within the joint venture, we will have opportunities to add other applications, engines and power systems to the JV portfolio,” said Andreas Schell, president and CEO of Rolls-Royce Power Systems. “Our joint venture combines the strengths of the two partners: Rolls-Royce Power Systems’ cutting-edge technology in reciprocating off-highway engines and Force Motors’ long-standing experience in top quality manufacturing, with access to the Indian market. For us, it’s the perfect fit,” said Schell.