MTU Friedrichshafen GmbH, a subsidiary of Rolls-Royce, and Guangxi Yuchai Machinery Company, a China Yuchai International Limited subsidiary, signed an agreement to set up a 50/50 joint venture for the production, under licence from MTU, of MTU diesel engines in China.
Each party will invest 75 million RMB (around EUR 10.5 million) in the joint venture.
The joint venture will be based at Guangxi Yuchai Machinery’s primary manufacturing facilities in Yulin City in Guangxi Province and is expected to begin production in 2017.
The joint venture will produce MTU Series 4000 diesel engines compliant with China Tier 3 emission standards with power outputs ranging from 1400 to 3490 kW, primarily for the Chinese off-highway market, in particular for power generation and oil & gas applications.
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