CRRC Corporation

CRRC Corporation Limited
Native name
 中国中车股份有限公司
public
Industry Manufacturing
Predecessor China CNR Corporation
CSR Corporation Limited
Founded 1 June 2015[1]
Headquarters Beijing, China
Area served
 Worldwide
Key people
 President: Xi Guohua
Chairman: Cui Dianguo [2]
Products Rolling stock
Owner CRRC Group (54.18%)
Number of employees
 175,700[1]
Parent CRRC Group
Website www.crrcgc.cc

CRRC Corporation Limited is a Chinese publicly traded rolling stock manufacturer, formed on 1 June 2015 with the merger of China CNR Corporation and CSR Corporation Limited.

At inception it had 175,700 employees, and is the largest rolling stock manufacturer in the world.

The parent company of CRRC Corporation is CRRC Group, a state-owned enterprise that was supervised by the State-owned Assets Supervision and Administration Commission of the State Council.

History

China CNR Corporation and CSR Corporation Limited, once one company, were separated in 2000.[3]

In late 2014 CNR and CSR agreed to merge, subject to approval by the Chinese state - under the agreement CSR would formally acquire CNR, and the combined business then be renamed China Railway Rolling Stock Corp (CRRC). Rationals given for the merger were increased efficiency, and the ability to better compete internationally with combined resources.[4]

The merger came into effect 1 June 2015, with each CNR share exchanged for 1.1 CSR shares - the combined company became the largest railway rolling stock manufacturer in the world, and had over 90% of the China market. Total employment of the combine was 175,700 persons, and the share capital was valued at 27,289 million Yuan.[1]

After formation CRRC began efforts to expand overseas: after being awarded a 284 vehicle order for metro cars for Massachusetts Bay Transportation Authority's Red and Orange lines with a $556.6 million bid the company began work on a 13,900 square metres (150,000 sq ft) assembly plant in Springfield, Massachusetts at a former Westinghouse plant,[5] ground breaking on the new plant took place in September 2015.[6] In mid 2015 production began at a rolling stock plant in Batu Gajah, Perak, Malaysia, a satellite of Zhuzhou Electric Locomotive, and the corporation's first plant outside China.[7] Additionally the former CSR Corporation Limited had acquired Emprendimientos Ferroviarios in Argentina in 2014 and announced in 2016 that they would begin maintenance and production of new rolling stock for export in the country.[8][9] Argentina had previously purchased a variety of rolling stock from the company over the years, including 704 EMU cars, 81 DMU cars, 44 passenger locomotives, 360 carriages, 107 freight locomotives and 3,500 freight cars, in addition to the 150 200 Series cars for the Subte.[10][9][11] In mid 2015 CRCC formed a freight wagon joint venture Vertex Rail Technologies as a minority partner with private equity backers to establish production in Wilmington, North Carolina at a former Terex facility;[12] the plant was operational by beginning 2016.[13]

In late 2015 Yu Weiping CRRC vice-president stated the company planned to double overseas sales over five years, with North American passenger rail being one target.[14] Interim six month financial results for the new company showed an increase in overseas revenue of over 60%. Half year revenue was 91.8 billion Yuan, with a gross profit of 19.5 billion Yuan. Non rail revenue (car equipment, generators) was 20.94 billion Yuan.[15]

In March 2016 CRRC (CSR Sifang) was awarded a contract to build 400 7000-series cars for the Chicago Transit Authority (CTA), with an option for another 446 cars. The cost of the contract was $632 million up to $1.31 billion with options; as a consequence CRRC began development of an $40 million assembly factory in Chicago.[16][17]

Other investments

On 8 January 2016 CRRC Corporation purchased 13.06% stake of China United Insurance Holding (Chinese: 中华保险) from China Insurance Security Fund for RMB 4.455 billion.[18]

See also

References

  1. 1 2 3 "Chinese rolling stock manufacturers merge to form CRRC Corp". Railway Gazette International. 2 June 2015.
  2. ↑ "Senior roles filled at CRRC", www.railwaygazette.com, 25 Jun 2015
  3. ↑ "China's Top 2 Makers of Bullet Trains Merge". New York Times. 30 December 2014. Archived from the original on 19 June 2015.
  4. ↑ "CNR and CSR agree merger terms". Railway Gazette International. 31 December 2014.
  5. ↑ Barrow, Keith (22 Oct 2014), "CNR selected to supply new trains for Boston", www.railjournal.com
  6. ↑ "Groundbreaking ceremony for CRRC's US assembly plant", www.railwaygazette.com, 4 Sep 2015
  7. ↑ Barrow, Keith (13 July 2015), "CRRC opens Malaysian rolling stock plant", www.railjournal.com
  8. ↑ "CSR adquiere EMFER y desembarca en la Argentina", enelsubte.com (in Spanish), 26 Feb 2014
  9. 1 2 "Una empresa china quiere instalarse en la Argentina para fabricar vagones". La Nacion. 27 September 2016. Retrieved 28 September 2016.
  10. ↑ "Dietrich acordó con gigante ferroviario chino instalar taller en el país". El Cronista (in Spanish). 28 September 2016. Retrieved 28 September 2016.
  11. ↑ "CRRC reitera sus intenciones de instalarse en la Argentina". EnElSubte (in Spanish). 30 September 2016. Retrieved 30 September 2016.
  12. ↑ "Chinese manufacturer invests in US wagon venture", www.railwaygazette.com, 6 July 2015
  13. ↑ "US-Chinese joint venture delivers first wagons", www.railwaygazette.com, 22 Jan 2016
  14. ↑ Cao, Bonnie (10 September 2015), China Trainmaker CRRC Plans to Double Its Overseas Sales, Bloomberg
  15. ↑ Briginshaw, David (1 Sep 2015), "CRRC first-half profits up while overseas revenue soars", www.railjournal.com
  16. ↑ Barrow, Keith (9 Mar 2016), "CRRC to build up to 846 metro cars for Chicago", www.railjournal.com
  17. ↑ "China's CRRC wins $1.3 bln deal to supply Chicago rail cars", www.reuters.com, 10 Mar 2016
  18. ↑ "ACQUISITION OF 13.06% EQUITY INTERESTS IN CHINA UNITED INSURANCE" (PDF). CRRC Corporation. 8 January 2016. Retrieved 13 October 2016.
Wikimedia Commons has media related to CRRC Corporation.
This article is issued from Wikipedia - version of the 10/29/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.