Train maker to set up JV in Poland
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China CNR Corporation, one of the country's two largest train manufactures, will set up a joint venture in Poland's capital Warsaw together with Poland's PKP Cargo, the company announced Saturday in a filing on the Shanghai Stock Exchange.
The 50:50 joint venture CNR-Cargo Wagon Limited Liability Company, with a registered capital of 1 million Zloty ($293,565), will manufacture freight wagons in Poland.
A source with CNR directorate office said the joint venture would be CNR's first manufacturing company overseas if the program gets approval.
"CNR began talks with PKP in the second half of last year," an employee with CNR told the Global Times Saturday. "We haven't exported to Poland before."
The source, who declined to be named, said CNR is expecting to provide freight trains to all of Europe through the joint venture. The source added that more than 80 percent of trains in Poland are produced by PKP.
The move follows a 2.2 billion yuan($322 million) export contract to Argentina signed in March, providing high-speed diesel locomotives and passenger coaches. CNR bagged another two 4.1 billion yuan ($600 million) contracts in January, a passenger coach export-to-Pakistan program and a subway train export-to-Argentina program.
CNR said on its website the company has exported 569 diesel locomotives as of 2009.
CNR is benefiting from Beijing's recent massive investment in railways. The government has budgeted 2.15 trillion yuan ($315 billion) for rail lines until 2012.
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