On February 19, 2016, the joint venture project between Yuchai and MTU of Germany was finally completed after two years of negotiations. Both parties held a joint venture signing ceremony at Yulin Hotel to jointly invest in the establishment of Yuchai Anteyou Power Co., Ltd. High-end, high-speed, high-power engines with the world's top technology level expand the domestic and foreign ship electric power markets. This marks another major step in the internationalization of Yuchai.
Build the top high-speed high-power engine Yuchai and Germany MTU join hands to take a new start
Xing Min, executive vice president and secretary general of China Internal Combustion Engine Industry Association, Zhang Hongzhong, deputy secretary-general of the China Domestic Combustion Power Generation Equipment Association, and Yang Xinzheng, deputy secretary-general, and Mayor Su Haiyu of Yulin City, deputy mayor of the Yulin City, Qiu Dekui, and chairman of Yuchai Co., Ltd. MTU President Dr. DOHLE attended the signing ceremony.
MTU, a subsidiary of Rolls-Royce Power Systems, is a world-leading engine manufacturer. This time, Yuchai and MTU entered into a joint venture to establish Yuchai Anteyou Power Co., Ltd. in Yulin, and exclusively introduce MTU's S4000-03 series engine R&D technology and manufacturing technology to gradually realize the localization of this series of engine components. Launched at the market with a competitive price in line with China's T3 emissions regulations, the output power of 1400 kilowatts to 3490 kilowatts of the engine. The joint venture will be officially put into production in 2017, with an annual output of 1,500 engines.
The construction of the joint venture will be promoted in two phases. In the first phase, the joint venture company will invest in the establishment of a new production line to purchase the relevant parts and components from MTU, Yuchai and the Chinese supplier. The products will be marketed in China through Yuchai and MTU, and in the Chinese overseas market. The MTU will be sold exclusively and the target market will be the power market for high-power generators, oil and gas fields and drilling. In the second phase, the joint venture company plans to expand its product spectrum and market application areas in accordance with market demand, and consider establishing joint sales companies to establish sales and service networks to sell directly to end customers.
Dr. Dole's speech Dr. Dole said that MTU chose China because China is the largest emerging market and MTU's S4000 diesel engine can meet the needs of the Chinese market. MTU chose Yuchai because Yuchai is China's largest independent diesel engine manufacturer. Yuchai has a straggling strategy for off-road, especially for shipbuilding and oil and gas fields. Yuchai has strong R&D, manufacturing and marketing capabilities. MTU hopes to cooperate with Yuchai to reduce the production costs through the use of engines in China and expand sales channels in China to achieve market growth.
Junping believes that under the “new normalâ€, Yuchai’s biggest difficulties are mainly due to the continuous changes in the external market environment, competitive environment, and policies and regulations, and Yuchai needs “transition through transitionâ€. This cooperation is expected to promote Yuchai’s three transformations, namely “market transitionâ€, “management transformation†and “brand transformationâ€. In recent years, Chinese engine companies have stepped up research and development and upgrading of high-speed and high-power diesel engines. Yuchai has also increased R&D investment and market development in the high-marine shipboard sector, and its market influence has gradually increased. The joint venture and cooperation between Yuchai and MTU is in line with the strategic direction of Yuchai’s mid- to long-term strategic plan for the development of the ship power business segment, which will broaden the product chain, increase competitiveness, and occupy a leading position in the industry. In the next five years, Yuchai will continue to build new cooperative relationships with its partners, fully develop a product platform with advanced international standards, and improve the competitiveness and internationalization of Yuchai.
According to analysis by industry experts, in the future, China will still maintain a strong development momentum. This will bring a series of new market opportunities for cooperation between the two parties: high-end power generation such as high-speed rail, airports, data centers, and smart manufacturing, China The demand for natural gas, oilfield drilling, etc., will enable the cooperation between the two parties to have broader development prospects.
During the signing ceremony, Yuchai also signed the first batch of 50 engine intention orders with MTU and signed the first batch of sales orders with OEM customers.
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