by GAO Jing
Rolls-Royce Power Systems (China) general manager ZHOU Yahong says the market's momentum is "unstoppable" for at least the next few years. The company's new mtu 2000 series engines have now rolled off the production line in China for the first time, with the initial batch ready for delivery.
Otto Preiss, president of stationary power solutions at Rolls-Royce Power Systems, said the new-generation high-performance diesel engines are built at the Suzhou plant of MTU Yuchai Power Company — a joint venture between Rolls-Royce and Guangxi Yuchai Machinery Co — to the same standards as in Germany, with after-sales support handled locally to improve responsiveness and cut costs.
The venture also runs a factory in Yulin, Guangxi, producing mtu 4000 series engines, with more than 3,000 units made so far. The 2000 series, delivering 800-1,000 kW, targets mid-power applications such as data centres, industrial parks, power stations, rental fleets and infrastructure backup. The 4000 series exceeds 1,300 kW for heavy-duty uses.
Zhou said local output for data centre use is about 1,000 engines annually, well below actual demand. Diesel generators remain preferred over battery systems for their capacity, safety and stability, with engines accounting for 60-70 per cent of generator cost.
China's data centre diesel generator market could reach 9.1 billion yuan in 2025, up over 50 per cent year on year, and hit 18.1 billion yuan by 2028, according to Guotai Junan Securities. Guolian Minsheng Securities projects demand will exceed 6,000 units in 2025. Caterpillar's Tianjin unit also told Jiemian News last year that most of its engine orders now come from this sector.
Founded in 1906 and headquartered in London, Rolls-Royce reported first-half revenue of £9.1 billion (92.75 billion yuan), up 10.7 per cent, with operating profit up 50 per cent to £1.7 billion. Power Systems accounted for 22 per cent of sales, with margin rising to 15.3 per cent from 10.3 per cent, driven by growth in data centre and government orders.
Zhou attributed the improved margins to market growth, streamlined operations and tighter cost control, with localisation in China reducing tariffs, transport costs and component expenses. About 60 per cent of parts in locally made mtu 4000 engines are now sourced domestically. "Ten years ago, some doubted whether German standards could be met in China," she said. "Over time, our suppliers have proved they are more than capable."
