Ground Breaking for New mtu Engine Plant in Suzhou, China

• Assembly of Diesel Engines of the mtu Series 2000 for Power Generation
• Volker Heuer, President and CEO of mtu: Investment is a long-term commitment to customers, business partners and employees of mtu

MTU Friedrichshafen, one of the world’s leading suppliers of diesel engines and complete drive systems for ships, heavy land-based and rail-bound vehicles and decentralized power generation systems, has broken ground today for a new assembly plant for Diesel engines in Suzhou, China. The new plant will produce engines of the mtu series 2000 for power generation applications.

The investment for the new plant of MTU Engineering (Suzhou) Co., Ltd comes from MTU Asia Pte Ltd, Singapore, a wholly-owned subsidiary and Regional Center Asia of MTU Friedrichshafen, Germany. MTU Engineering (Suzhou) Co., Ltd, which, again, is a 100 % subsidiary of MTU Asia, has obtained the approval for re-investment in Suzhou Industrial Park (SIP) to incorporate the assembly production and packaging of mtu products in her operative business in China. The new facility is located at Longyun Road in Phase III Land of the Suzhou Industrial Park in Suzhou, China, about 100 kilometers northwest of Shanghai.

“This investment reflects our long-term commitment to the customers and business partners of mtu in China as well as to our employees”, stated Volker Heuer, President and CEO of MTU Friedrichshafen. The engines produced at the new assembly plant in Suzhou are aiming for the domestic market to meet the strong market demand in China associated with the continued economic growth. There is even a potential for further growth in power generation and other applications in China.

The production will include 12V-, 16V-, and 18V-cylinder engines of the mtu Series 2000, with up to 30 % of components to be supplied by local suppliers eventually, making it a sourcing platform for engine components in China. Besides satisfying customers’ demands, it will also bring business cooperation and development opportunities with the local and international industries.

The new plant will have engine assembly and testing facilities, technical support, a fully integrated service workshop, training center, parts warehouse and supply, and is scheduled to be ready by mid 2006. The plant can rely on the highly developed infrastructure at Suzhou Industrial Park and mtu’s seven years of experience there.
The engines will be produced strictly according to mtu production standards & quality, conforming to the certification of ISO 9001:2000.

The production will complement that of MTU Friedrichshafen in Germany, the supply of components from Friedrichshafen will also secure jobs there.

The first investment decision in Suzhou was made in 1995 leading to the establishment of MTU Engineering (Suzhou) Co., Ltd in 1996 at Su Tong Road in SIP Phase I Land, primarily providing sales support and after-sales services for mtu products operating in China. The re-investment project now will also expand the business activities of MTU Engineering (Suzhou) Co. Ltd., encompassing sales of the locally assembled engines as part of its operations.