Guangxi Yuchai Machinery Company Limited (GYMCL) and Rolls-Royce Power Systems have signed an agreement to intensify collaboration in production and sales of the MTU-series diesel engines.

The agreement notes that both sides will expand cooperation in technology, manufacturing, marketing and services, and will extend the product application market of diesel engines.

The two companies established a joint venture, MTU Yuchai Power, in 2018, headquartered in the southern Chinese city of Yulin in Guangxi province. It specialises in manufacturing MTU-series engines for power generation applications in the Chinese market, with an annual capacity of up to 1,500 units.

Rolls-Royce’s Director, Greater China, Mr Julian MacCormac said that the new move aims to better serve the high-end Chinese market.

GYMCL Chairman Mr Yan Ping added, “The new move is aligned with Yuchai's long-term development strategy through win-win partnership with global partners. In Rolls-Royce Power Systems, we are happy to have found a globally successful partner and a technology leader. Combining this with the local market knowledge and production capability of Yuchai Machinery is an ideal way to address the future together.”