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Rolls-Royce To Get Chinese Train Engines Running In S. Africa

Rolls-Royce To Get Chinese Train Engines Running In S. Africa

Rolls-Royce has entered into a $112-million deal to build engines for Chinese freight trains that will be one of South Africa’s largest-ever infrastructure projects, BusinessInsider reports.

Rolls agreed to build and deliver 232 engines to a subsidiary of Chinese locomotive manufacturer CNR Dalian in South Africa, according to a report in CityAM. The Chinese company is central to South Africa’s efforts to overhaul its fleet of freight locomotives and its rail network, BusinessInsider reports.

The MTU Series 4000 engines will be produced in Germany and delivered between 2015 and 2017.

“We are proud to be supplying MTU’s most powerful locomotive engine for one of the largest transport infrastructure projects in South Africa,” said Ulrich Dohle, CEO of Rolls-Royce power systems.

Rolls traditionally provides engines for aeroplanes and ships. The deal to power locomotives is a lucrative one for the FTSE 100 company, and represents a breakthrough into the Chinese market, BusinessInsider reports.

“Winning this order signals our breakthrough into the market for Chinese freight locomotives, which are being exported in ever larger quantities,” said Michael Haidinger, an executive in the Rolls engine business, BusinessInsider.

The engines are the most powerful MTU locomotives currently operating with an output of 3,300 kilowatts each, according to CityAM. They’ll be installed in new freight locomotives for South African operator Transnet Freight Rail.

The MTU brand is part of Rolls-Royce Power Systems, headquartered in Germany.

According to the contract, the first 20 engines will be made in Germany and delivered directly to CNR Dalian. The remaining 222 engines will be delivered to subsidiary MTU South Africa for testing, preparation and final assembly.

MTU South Africa is planning to add assembly capacity to accommodate the contract, CityAM reports.