19th Feb 2016 11:30
LONDON (Alliance News) - A subsidiary of Rolls-Royce Holdings PLC on Friday signed a deal with a unit of China Yuchai International Ltd to produce MTU diesel engines in China.
MTU Friedrichshafen GmbH, a part of Rolls-Royce Power Systems, and China Yuchai's Guangxi Yuchai Machinery Co Ltd have signed an agreement to set up a 50:50 joint venture to produce the engines.
Each party will invest RMB75.0 million in the joint venture, which they said will open up new growth opportunities for both partners, particularly in China and Asia.
The companies said 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.
Rolls-Royce shares were down 1.0% to 654.5 pence on Friday.
Copyright RTT News/dpa-AFX
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