(Yicai Global) Aug. 24 -- China's Cooltech Power will invest EUR15 million (USD17.7 million) to establish a joint venture with an affiliate of British engineering company Rolls-Royce Holdings to make diesel generators.

Cooltech will lease facilities to the 50:50 JV with MTU Friedrichshafen, the Shanghai-based power generation equipment maker said in a statement on Aug. 22, without disclosing output details. The JV's registered capital is EUR30 million (USD35.5 million).

The pair will leverage their supply chain, production, distribution, and branding advantages to increase output and reduce costs while expanding in the diesel generator market, the statement added. They will also explore the field of natural gas generators and team up on after-sales services.

The JV's European partner, based in Germany, sells power generator sets under the brands of MTU Onsite Energy and Rolls-Royce Solution.

The stock price of Cooltech [SHE:300153] climbed 0.2 percent to CNY5.74 (US 83 cents) this afternoon.

Editor: Emmi Laine