Rolls-Royce (LSE: RR., ADR: RYCEY) has officially inaugurated its new $24 million Logistics Operations Center (LOC) in Mankato, Minnesota, marking a major expansion of its US manufacturing operations. Located adjacent to the company’s existing mtu power generation facility, the 250,000-square-foot center is set to more than double production capacity for mtu Series 4000 generator sets, which provide mission-critical backup power for hospitals, airports, industrial facilities, data centers and other essential infrastructure across the Americas. The expansion is expected to create more than 100 new jobs, increasing the local workforce by nearly 20 percent and reinforcing Rolls-Royce’s position as one of Mankato’s largest manufacturers.
Jörg Stratmann, CEO of Rolls-Royce Power Systems, said the investment reflects the growing demand for dependable backup power in the United States. He noted that the Mankato facility plays a vital role in the company’s long-term strategy while strengthening American manufacturing and supporting critical infrastructure with locally built power solutions.
Adam Wood, Managing Director of Rolls-Royce in America, highlighted the company’s longstanding relationship with Mankato, emphasizing that the facility has evolved from supplying power systems for local agriculture to manufacturing advanced generators that serve industries across the country. He credited the workforce for driving the site’s continued success and growth.
Designed to support expanding production requirements, the new LOC dedicates nearly two-thirds of its space to logistics operations, with the remainder allocated to assembly activities. The facility features climate-controlled logistics and production areas, indoor loading and unloading capabilities, and additional space for future expansion as market demand continues to rise.
Mankato Mayor Najwa Massad welcomed the investment, describing it as a significant boost for the local economy through the creation of high-skilled jobs and new business opportunities. Catalina Valencia, Executive Director of Business Development at the Minnesota Department of Employment and Economic Development, said the project strengthens Minnesota’s manufacturing ecosystem by expanding skilled employment, supply chains and industrial capabilities. The Mankato facility assembles generator sets powered by mtu Series 4000 engines manufactured at Rolls-Royce’s Aiken, South Carolina, plant, where the company announced a $75 million capital investment in 2025.
Originally announced in June 2025, the Minnesota expansion is expected to more than double production capacity for mission-critical backup power systems by the end of 2026. Rolls-Royce currently supplies backup power solutions to more than 25 percent of US data centers, in addition to supporting healthcare, transportation, industrial and other critical infrastructure sectors. The project builds on the company’s more than $1.5 billion investment in the United States over the past decade, reinforcing its commitment to expanding domestic manufacturing and supporting long-term economic growth.
