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Rolls-Royce opened a new $24 million logistics operations center in Mankato this week. 

It’s built adjacent to an existing power generation manufacturing facility, and the expansion allows Rolls-Royce to double production capacity for its mtu Series 4000 generator sets that are used to provide backup power for large-scale infrastructure, including hospitals, airports, industrial sites and data centers. 

This investment increased the local workforce by 20 percent, making Rolls-Royce one of the largest manufacturers in Mankato, and created more than a hundred jobs, said Andy Wilke, executive vice president of Greater Mankato Growth. 

“I think that there’s a significant ripple effect amongst all the other partners, their suppliers,” Wilke told MPR News. “Their supplies, there’s logistics [and] there’s other businesses that are going to be able to support Rolls-Royce in their mission to continue to grow their generator business.”

Rolls-Royce made its first investment in Mankato with a $14 million investment in 2020, Wilke said. He added that the city is a major hub for generator production with other companies such as BlueStar Power Systems and NIDEC Kato-Engineering. 

This expansion builds on more than $1.5 billion by Rolls-Royce in the U.S over the past decade, with 34 locations in 26 states. 

“[Rolls-Royce] continue to see an increase in demand for these emergency generators for mission-critical-type uses,” he said. “Among them would be healthcare, manufacturing and other uses … they’re all significant contributors to the economy.”

The expansion to the already-existent facility was first announced in June 2025, when Rolls-Royce said it expected to increase capacity for backup power systems by more than double by the end of this year. 

The company’s backup power systems also support more than 25 percent of U.S. data centers, along with other critical infrastructure. Wilke said there continues to be more demand. 

“I think that they have found that there continues to be that need to ensure consistent energy or power backup systems for individuals in different industries,” he added. 

Generator sets produced in Mankato use mtu Series 4000 engines built at the Rolls-Royce facility in Aiken, S.C. 

“As demand for reliable, independent energy accelerates in the U.S., this investment enables Rolls-Royce to keep pace with the market and provide mission-critical backup power generation at a greater scale than ever before,” said Jörg Stratmann, CEO of Rolls-Royce Power in a news release. 

“Mankato plays an essential role in both the future of Rolls-Royce and U.S. manufacturing. …This expansion in Mankato builds on our century-long commitment in America, investing locally to drive national economic growth.”

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Rolls-Royce opened a $24 million logistics center in Mankato that will more than double generator production capacity, add over 100 jobs and strengthen the city’s role as a hub for backup power systems used by hospitals, airports, industrial sites and data centers.

Photo courtesy of Rolls-Royce

Exterior shot of the Rolls-Royce plant in Mankato

Interior of Rolls Royce logistics operations center in Mankato

New $24 million Rolls-Royce expansion opens in Mankato

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