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Rolls-Royce cuts ribbon on new $24m expansion in Mankato, Minnesota

09 July 2026

Jörg Stratmann, CEO of Rolls-Royce Power Systems, and Najwa Massad, Mayor of Mankato, at the opening of Rolls-Royce’s new Logistics Operations Center in Mankato, USA. The $24 million expansion was officially inaugurated in the presence of representatives from government, business and the company.
  • New Logistics Operations Center represents $24M investment in Mankato, continuing Rolls-Royce's commitment to America’s manufacturing revival and energy resiliency
  • Expanded facility will more than double production of backup power systems used for critical infrastructure across the Americas
  • Investment is creating more than 100 local jobs, making Rolls-Royce one of the largest manufacturers in Mankato

Rolls-Royce (LSE: RR., ADR: RYCEY) today officially opened a new $24M, 250,000 sq. ft. Logistics Operations Center (LOC) in Mankato, Minnesota, USA, adjacent to its existing mtu power generation manufacturing facility. The expansion will allow Rolls-Royce to more than double production capacity for its mtu Series 4000 generator sets, used to provide backup power for large-scale critical infrastructure across the Americas, including hospitals, airports, industrial sites and data centers. This investment is creating more than 100 local jobs, a nearly 20 percent workforce increase, making Rolls-Royce one of the largest manufacturers in Mankato.

Jörg Stratmann, CEO, Rolls-Royce Power Systems, said:

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As demand for reliable, independent energy accelerates in the U.S., this investment enables Rolls-Royce to keep pace with the market and provide mission-critical backup power generation at a greater scale than ever before. Mankato plays an essential role in both the future of Rolls-Royce and U.S. manufacturing – the American-made generators built here power economic activity and critical infrastructure across the Americas.”

The U.S. is undergoing a manufacturing renaissance, and Rolls-Royce is proud to be a part of that movement. This expansion in Mankato builds on our century-long commitment in America, investing locally to drive national economic growth.

Adam Wood, Managing Director at Rolls-Royce in America said:

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Rolls-Royce has a deep history in Mankato, and we are proud to demonstrate our continued commitment to grow in and with this community. From the beginning, providing essential power systems for local farmers, to today, where we are producing large-scale generators that support critical infrastructure across the country, the impact of our Mankato facility is defined by the people who keep it running, generation after generation.”

The new LOC provides additional capacity for logistics and assembly operations and was purpose built to support increased production of mtu Series 4000 generator sets. Approximately two-thirds of the Mankato LOC is dedicated to logistics operations, with the remaining space supporting production activities. The facility includes climate-controlled logistics and assembly areas, interior loading and unloading capabilities and room for future expansion as demand continues to grow.

Najwa Massad, Mayor, City of Mankato, said:

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Rolls-Royce continues to be a tremendous multi-decade partner to Mankato. From groundbreaking to ribbon cutting, I’ve witnessed this $24 million investment in our community take shape, and I look forward to seeing its long-term impact with new high-skill jobs and business opportunities. This commitment from Rolls-Royce is exactly the kind of energy we need to keep our city’s economy growing.”

Catalina Valencia, Executive Director of Business Development, Minnesota Department of Employment and Economic Development, said:

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Mankato is a hub for business and manufacturing, and we are very pleased to see a truly meaningful investment by Rolls-Royce in local jobs, industry, and community. This is about more than a new facility, it’s about expanding our ecosystem of skilled trades, supply networks, and production capabilities – keeping Minnesota attractive and competitive for the future.”

The generator sets produced in Mankato use mtu Series 4000 engines that are built at the Rolls-Royce facility in Aiken, South Carolina, where Rolls-Royce announced a $75M capital investment in July 2025.

The Mankato investment, first announced in June 2025, is expected to increase production capacity for mission-critical backup power systems by more than double by the end of 2026. Today, Rolls-Royce backup power systems support more than 25 percent of U.S. data centers, alongside other critical infrastructure, providing always-on power without impacting local energy grids.

The expanded facility will help meet growing demand from customers across healthcare, transportation, industrial, data center, and other critical infrastructure sectors, where reliable backup power is essential to maintaining operations and supporting economic growth.

The expansion builds on more than $1.5B invested by Rolls-Royce in the U.S. over the past decade. Across 34 locations in 26 states, Rolls-Royce employs more than 5,000 Americans and supports more than 1,000 U.S. suppliers. Learn more about Rolls-Royce's economic impact in the U.S., including its contribution of more than $6.2B to annual GDP, in the company’s latest Economic & Social Impact Report released December 2025.

Press photos for download can be found at Media Centre (mtu-solutions.com)

About Rolls-Royce Holdings plc
  1. Rolls-Royce is a force for progress; powering, protecting and connecting people everywhere. Our products and service packages help our customers meet the growing need for power across multiple industries; enable governments to equip their armed forces with the power required to protect their citizens; and connect people, societies, cultures and economies together.
  2. Rolls-Royce has a local presence in 47 countries and customers in over a hundred more, including airlines and aircraft leasing companies, armed forces and navies, and marine and industrial customers.
  3. Through our multi-year transformation programme, we are building a high-performing, competitive, resilient and growing Rolls-Royce. We are building the financial capacity and agility to allow us to successfully develop and deliver the products that will support our customers through the energy transition.
  4. Annual underlying revenue was £20.1 billion in 2025, and underlying operating profit was £3.46 billion.
  5. Rolls-Royce Holdings plc is a publicly traded company (LSE: RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69).
  6. 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, heavy land, rail and defence vehicles and for the oil and gas industry. The portfolio also includes diesel and gas systems and battery containers for mission critical, standby and continuous power, combined generation of heat and power, and microgrids. With its climate friendly technologies, Rolls-Royce Power Systems is helping to drive the energy transition.

www.rolls-royce.com

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