Record China Power Orders For Rolls-Royce
By Ian Cameron12 November 2020
Rolls-Royce business unit Power Systems has signed agreements for the delivery of a record number of MTU products as well as two strategic partnership agreements at the third China International Import Expo (CIIE) which was held in Shanghai.
Six Chinese companies have signed frame agreements for the delivery of almost 1000 MTU engines and systems of Series 2000 and 4000 for use in power generation and mining applications. In addition, Rolls-Royce Power Systems signed strategic cooperation 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.
For the first time at CIIE, Rolls-Royce also signed agreements for a mining application: The company inked a procurement framework agreement with Inner Mongolia North Hauler Joint Stock Co Ltd, a leading Chinese mining machinery manufacturer.
CRRC DATONG Co Ltd also placed an order for one MTU engine for use in a mining dump truck. The strategic cooperation 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 and our ambition is to be in China for China. In recent years, we have turned into a provider of integrated solutions for Chinese business partners: We have formed multiple joint ventures and established a Customer Care Center as well as a Tech Center in-country to be closer to customers and better satisfy their needs.”
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 a 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 a system integrator 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.
Growth opportunities from the acceleration of China’s New Infrastructure development are at the heart of the strategic partnership which Rolls-Royce Power Systems and SUMEC agreed at CIIE, said Fu Min Chu, Vice president of Sales and Business Development Greater China at MTU China: “Our backup power solutions will help SUMEC capture growth opportunities in China, especially in the booming data center market.”
Rolls-Royce said that 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 said it 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. In addition, Rolls-Royce formed MTU Yuchai Power, a joint venture with Chinese diesel engine manufacturer Guangxi Yuchai Machinery Company, in 2017. The company produces MTU Series 4000 engines for power generation in its plant in Yulin, Guangxi Province.