Rolls-Royce Power Systems, which is a part of the Rolls-Royce Group has entered into a joint venture agreement with Indian automaker Force Motors for manufacturing and supply of the high powered MTU 1600 series diesel motors that will be catering to the mega-luxury brand’s global requirements.
The company’s German parent BMW has decided to relocate the MTU 1600 series engines as well as power generator manufacturing unit from Germany owing to manufacturing cost related issues. As per the joint venture that has been signed between Rolls-Royce Power Systems and Pune based Force Motors, India will become the luxury auto giant’s global manufacturing hub for the MTU 1600 series of engines.
In this joint venture, the Indian automaker Force Motors will be holding 51% of the stakes, and the new establishment will be named as the Force MTU Power Systems Pvt. Ltd. The new establishment will be responsible for producing MTU’s 10 and 12 cylinder Series 1600 units which offer power outputs ranging from 545 hp to 1050 hp (400 kWm to 800 kWm). MTU will continue to be the brand name owned by Rolls-Royce Power Systems.
For this new establishment - Force MTU Power Systems Pvt. Ltd, all the required machinery will be shifted from Germany to India for the manufacturing of the MTU 1600 series of engines. This new joint venture will also be creating new job opportunities in India, as the establishment will be employing around 200 Indian employees. These Indian employees will be trained in Germany to acquire the required skills for manufacturing the engines as per Rolls-Royce’s specifications and standards.
The new facility is slated to commence it operations and manufacture the engines in the third quarter of 2019. This new establishment will be getting an investment of 300 crore in the first phase itself. The companies have not revealed the production capacity of this facility. In Germany, the engine production unit has been manufacturing 2,000 engines annually.