Venture to build subway equipment
21/2/2003 15:01
Shanghai Electric Corp. teamed up with two local investment
companies
to set up a new venture to produce subway cars and related
equipment for
local metro lines.
With an initial investment of 250 million yuan (US$30.12
million),
Shanghai Rail Traffic Equipment Development Co. Ltd. was unveiled
yesterday. The venture will produce subway cars and related
equipment,
power supply systems, engines, safety barriers, air
conditioners and signal
systems.
Shanghai Electric, China's largest manufacturer of electrical and
mechanical products, holds a 60 percent stake in the new company,
with
the other two share-holders, Shanghai Industrial Investment
(Group) Co. Ltd.
and Shanghai International Trust & Investment Corp.
Ltd. owning 24 and
16 percent respectively.
"The rail equipment firm will help boost the local
production of
subway equipment. Our target is that at least 70 percent of
such
equipment is produced locally," said Shanghai Executive Vice Mayor
Jiang Yiren.
Currently, only about 20 percent of subway equipment used
in
Shanghai is produced locally.
The new company will also make it easier
for operators to maintain
and repair their equipment, said Liang Changxin,
an engineer with
Shanghai Electric.
In the future, the new firm will look
to expand, selling trains and
equipment to cities around the
country.
Shanghai Electric also announced yesterday it has reached a deal to
fund research and development at Shanghai Tongji University.
"The rail
transport sector will be one of our core busi-nesses,
second only to our
power equipment department," said Ma Xinsheng,
president of Shanghai
Electric.
Shanghai will spend about 70 billion yuan over the next four years
building 11 new subway lines and 10 light rail lines.
Nationally, 200
billion yuan will be spent on inner-city rail
transport lines.
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