Rolls-Royce Power Systems and XCMG sign strategic cooperation agreement

Rolls-Royce Power Systems and XCMG have formed a strategic cooperation alliance to further develop the Chinese domestic and export mining equipment markets, providing optimised solutions to customers worldwide. Andreas Schell (left) CEO Rolls-Royce Power Systems, and Li Zong (right) XCMG Mining Machinery, General Manager, signed the agreement in Xuzhou, China.
  • Closer cooperation with Chinese heavy machinery manufacturing company to further develop low emission mining equipment

Rolls-Royce Power Systems and XCMG, a multinational heavy machinery manufacturing company based in Jiangsu, China, have formed a strategic cooperation alliance to further develop the Chinese domestic and export mining equipment markets, providing optimised solutions to customers worldwide.

A strategic cooperation agreement was recently signed in Xuzhou, headquarters of XCMG, by senior executives of the both companies. According to the agreement, Rolls-Royce and XCMG are committed to joint efforts in exploring opportunities to integrate Rolls-Royce’s renowned MTU power and propulsion systems including MTU Series 2000 and 4000 engines, into XCMG equipment for Chinese local and international mining projects, bringing together both parties’ technical strengths and business insights, in order to enhance product competitiveness and gain market share.

With annual revenue of USD7.5 billion in 2018, XCMG is currently the largest market player in the Chinese Construction & Industrial sector, and ranks 6th in the world's construction machinery industry. Rolls-Royce Power Systems has been supplying MTU S2000 and S4000 diesel engines to power XCMG’s mining trucks ranging from120 to 400 tonnage since 2012. The both parties see great potential in further exploring the market with mining equipment built in China powered by high performing, reliable MTU diesel engines that meet Chinese and global emission standards today and in the future.

Andreas Schell, CEO, Rolls-Royce Power Systems, said: “It is a great pleasure to strengthen our partnership with XCMG, a valued customer with strong market position and business ambition. The agreement demonstrates commitment of both our companies to deliver world-class solutions to the world’s mining industry.”

Tobias Ostermaier, President, Rolls-Royce Power Systems, Greater China, said: “I am confident that the agreement will allow better integration of MTU products and services into XCMG equipment, to achieve higher efficiency and optimised support to customers. It will also enable collaboration at different levels across each of our organisations to deliver highly completive and compelling offers to the market.”

Li Zong, XCMG Mining Machinery, General Manager, said: “The win-win cooperation is aligned with our development strategy to continue to enhance technology and market leadership home and aboard. The combined force of MTU and XCMG will allow us to leverage synergies and create shared value.”

The two companies also agreed to collaborate on the validation and testing of new power and propulsion technologies including gas engines and hybrid solutions, as well as applications of digital technologies, to drive low-carbon, sustainable development of the mining industry.

Press photos are available for download from www.rrpowersystems.com/press

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 11,000 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. Under the MTU Onsite Energy brand, the company markets diesel and gas systems 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 billion in 2018, around half of which came from the provision of aftermarket services.
  5. In 2018, Rolls-Royce invested £1.4 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.
  6. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.

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