BEIJING: China’s top rival bullet train makers, are set to merge into a new company in a bid to make unified pitch for overseas rail projects, a move that sent their share prices soaring.
CNR Corp. And the CSR Corp., both state-owned firms will merge into a new company to avoid “in-fighting” during exploration of the global market. The merger was filed with the Shanghai Stock Exchange yesterday.
“The new company will be named CRRC Corporation Ltd, which will inherit all the assets, liabilities, businesses, staff, contracts, certificates as well as all other rights and obligations of the two companies,” the companies said in a joint statement.
“The merger will be conducted on the principles of equality, joint development, stable progress, and standard operations,” state-run Xinhua news agency quoted the statement as saying.
“The merger aims to build a new transnational and globally leading solution provider of high-end railway transport equipment,” it said.
The decision to merge the two was taken by the Chinese government recently as it made a strong sales pitch for its high speed train technology to India and other countries.
As part of the agreement reached with India, the Chinese firm will conduct the free feasibility study to construct the bullet train route between Delhi and Chennai.
A Japanese firm is conducting a feasibility study for the bullet train project in the Mumbai-Ahemdabad corridor.
CSR and CNR once were one company but were separated in 2000. They account for 80 percent of the rolling stock on China’s train network and the majority of subway trains.
“Both have the ability to produce high-speed trains of the CRH 380 series, which can run at 380 kilometres per hour,” it said.
China has the world’s biggest bullet train network but its trains are based on French, German and Japanese technology. Beijing is trying to develop its own bullet trains to secure a foothold in a growing global market. (AGENCIES)
Trending Now
E-Paper
Follow our WhatsApp channel