Among the matters of agreement is a commitment by CRRC to continue to consider MTU engines from Rolls-Royce in its locomotives and diesel railcars. The two companies also agreed to collaborate on future power delivery solutions, including hybrid drives and gas engines.

"This strategic partnership agreement is a major step forward in strengthening our successful collaboration with Rolls-Royce Power Systems and MTU," said Dayong Chen, general manager for International Business at CRRC, which is China's largest train manufacturer.

Rolls-Royce Power Systems AG Chief Executive Officer (CEO) Andreas Schell said, "we are proud that we are consistently convincing CRRC, one of the major players in the global rail market, of the quality of our drive solutions. Our close working relationship has been established firmly in recent years, and this agreement puts it on a new footing - something which is going to benefit both partners, and our customers as well."

The highly productive relationship between Rolls-Royce and CRRC goes back many years and has seen the world's largest rolling stock manufacturer's order around 500 MTU Series 4000 engines for locomotives used by customers in New Zealand, Argentina and South Africa.

The partnership agreement was signed at the MTU Rail Symposium which attracted a total of 135 MTU business associates from 26 countries to Friedrichshafen to engage in discussions on current developments at MTU and the future of the rail market.

Headquartered in Friedrichshafen in southern Germany, Rolls-Royce Power Systems is one of Rolls-Royce's five businesses.