The agreement continues the two parties “long-standing collaboration,” and it references the potential opportunities afforded by China’s One Belt, One Road strategy to develop infrastructure connections between China, Asia, and Europe.

CRRC has previously ordered around 500 MTU Series 4000 engines for locomotives used in South Africa, New Zealand, and Argentina.

“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,” says Mr Andreas Schell, CEO of Rolls-Royce Power Systems.