Invensys rail agreements open way into China market
Invensys Rail has signed 'significant' agreements with a leading Chinese manufacturer of rolling stock that will help it sell its train control and signalling systems in China's fast-growing rail infrastructure and mass transit markets, as well as opening up opportunities for joint bids elsewhere.
Under the agreements with CSR Corporation, Invensys Rail will license Zhuzhou CSR Times Electric co. Ltd, (TEG), CSR's train control and signalling company, to manufacture and sell its Westrace interlocking products in China. TEG and Invensys will work together to sell their broader train control and signalling solutions through TEG into the expanding Chinese domestic mass transit market, worth an estimated €670m a year (source: UNIFE) and CSR's rolling stock companies and Invensys Rail will jointly bid a number of major international contracts.
Invensys Rail will become CSR's exclusive signalling supplier on an agreed set of global projects that combine rolling stock and signalling solutions. Initial projects are in mass transit and span the Middle East, India and South East Asia.
Commenting on the agreement James Drummond, CEO of Invensys Rail said: "China is a strategically important market for us. The country is investing heavily in its railway infrastructure and represents a significant growth opportunity for us in Asia. We are therefore delighted to enter into these agreements with CSR and TEG, who are not only key players in China but are becoming an increasing force in the global railway market."
> The Invensys deal comes shortly after another European firm, Alstom, announced a new agreement with its existing Chinese partners CNR and SEC to expand the capabilities and competitiveness of their joint ventures in rolling stock (Shanghai Alstom Transport Co.) and traction systems-(Shanghai Alstom Transport Electrical Equipment Co.). The long-term goal is that SATCO and SATEE should be able to design, build and commercialise their own urban transit products for the Chinese market as well as for targeted export markets.