Engine maker Rolls-Royce announced a $13.9 million investment in mid-October 2020 to expand its power systems business unit by adding a new research and development building and multi-phase expansion for MTU in Mankato, Minn.
The company said its decision stemmed from growth in the market, as 2019 was a record year for the Mankato facility. Also, demand has risen for product offerings, necessitating the need for updated facilities, equipment and processes, and it was aiming to grow in a sustainable way.
At the center of the plan, it said, was the addition of 28,000 sq. ft. to the facility’s existing assembly hall for assembly lines, enhanced product testing capabilities and room for 20 new manufacturing positions.
“By expanding one of the existing assembly lines to accommodate the production of high-power MTU gas generator sets, capacity at the plant is expected to increase by an estimated 25%. This will mark the first time these gas generator sets have been produced in the U.S.,” the company confirmed.
CEO Andreas Schell called the Mankato growth central to its growth in the Americas. “More consistently than before, we are pursuing our strategy of evolving from an engine manufacturer to a provider of sustainable solutions. This investment in our Mankato plant will help us to meet the growing demand for energy in the Americas with locally manufactured products. Mankato will thus become an even more important part of our worldwide production network in the future,” Schell said.
The company said the first phase of the assembly hall expansion was scheduled for February 2021. The final phase is targeted for completion in September of this year.