Rolls-Royce and Shanghai Cooltech Power to jointly produce generator sets with mtu engines in China

• New 50/50 joint venture established in Shanghai to serve the growing Chinese market
• Purpose is to establish a stronger position in the backup power supply market, with a focus on data centres
• Production of generator sets equipped with mtu engines to start at end of 2020

Rolls-Royce’s business unit Power Systems and Shanghai Cooltech Power Co. Ltd., a leading Chinese manufacturer of power generation systems, have made a significant step forward together to strengthen their market position by forming a 50/50 joint venture. mtu Cooltech Power Systems will produce backup generator sets powered by mtu Series 1600, 2000 and 4000 engines for applications including but not limited to hospitals, airports, mining, semiconductors, telecoms and the rapidly growing data centre market, which has recently received a significant boost from the Chinese government’s newly announced New Infrastructure development plan, a programme launched by the central government to accelerate the digital transformation of the economy.

Tobias Ostermaier, President mtu Greater China, Rolls-Royce Power Systems, said: “This is an important step to further accelerate our fast-growing business in China. We pursue our growth strategy for diesel systems in China and move further towards becoming a provider of integrated power solutions in this strategically important market. We look forward to being in a position to supply our customers with world class mtu system solutions at China speed. The Chinese market presents tremendous opportunities for Power Systems’ business growth in a challenging global environment. We have an important role to play in ensuring power for China’s New Infrastructure such as telecommunications networks, servers, and data centres through our best-in-class safety-critical mtu power solutions.”

Xu Nai Qiang, President of Shanghai Cooltech Power, said: “We are proud to form the new joint venture with Rolls-Royce, which enables us to manufacture products of the highest quality for the Chinese market, and   to continue and enhance the success story of our long-standing collaboration.”

Rolls-Royce and Shanghai Cooltech Power have enjoyed a close partnership since 2013. Shanghai Cooltech Power is one of the biggest customers of the Power Systems business unit in China and has already installed nearly 1,000 mtu engines in backup generator sets. A key focus has been the telecommunications market, which will also be a major target now for the new joint venture.

mtu Cooltech Power Systems is to have a workforce of around 50 employees when it is launched this year. The joint venture will produce a range of generator sets based on mtu engines, which are to be supplied from Germany and China. Rolls-Royce and Shanghai Cooltech Power will then market and deliver these generator sets to their Chinese customers.

Having production in China will shorten delivery times significantly. Combined with direct access to the high quality and competitively priced supply chain in China, mtu system solutions will establish a highly competitive position in the China market. “As a result, we will be in a better position to adapt our product range to market requirements and to provide our customers with local support. Irrespective of the new joint venture, we will maintain our long-standing strategic partnerships and well-established collaboration with our community of Chinese partners in the field of decentralised power supply systems, and will systematically continue and strengthen these partnerships,” said Tobias Ostermaier.

Increasing market share in China, in addition to setting up and developing partnerships, are key elements of the PS 2030 strategy with which the Rolls-Royce business unit Power Systems is currently transforming itself from an engine manufacturer to a provider of integrated solutions.

Rolls-Royce has been producing mtu engines in China since 2006 and formed joint ventures with Chinese manufacturers to continue localizing its footprint over the years. The founding of mtu Cooltech Power Systems will help accelerate its localization in China to seize business opportunities and better serve the market.

About Rolls-Royce Holdings plc

1. Rolls-Royce pioneers cutting-edge technologies that deliver clean, safe and competitive solutions to meet our planet’s vital power needs.
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 as well as diesel and gas systems and battery containers for mission critical, standby and continuous power, combined generation of heat and power, and microgrids. Medium-speed engines from Bergen power ships and power generation applications.
3. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 70 navies, and more than 5,000 power and nuclear customers.
4. Annual underlying revenue was £15.45 billion in 2019, around half of which came from the provision of aftermarket services.
5. In 2019, Rolls-Royce invested £1.46 billion on research and development. We also support a global network of 29 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.