China CNR & CSR join forces to attack overseas market

• March 11, foreign media reports said two of China's largest rail vehicle maker China South locomotive and China CNR convened extraordinary general meeting on March 9, officially decided to merge. New enterprises will have been on the scale of leading us and European giants formed an overwhelming advantage, aimed at overseas bid to take the initiative.
  Japan Economic News reported March 10, China South locomotive and China CNR market share in China adds up to 90%, teamed with other State-owned enterprises accelerated after merging into overseas markets. China's "railroad country" itself ambition went into action.
  China South locomotive and China CNR merge strongly reflect the big push "going global" strategy of the Chinese leadership's will. According to an official of the China South locomotive, said that "hopefully merging will be completed in April", combined sales of the new company would be Canada's Bombardier company railway operations about 4 times.
  States for high-speed rail export negotiations at present, 28, also intends to bid for Hitachi, Kawasaki heavy industries and other developed countries that are also involved in the project.
  Located in Tangshan, Hebei, China North locomotive and rail vehicle manufacturers since last year has come from foreign Governments in South America and Africa who come to visit. Factory production is the introduction of Germany Siemens technology vehicles. Thin metal plate machining line step by step automated, workers engaged in cutting processes of aluminum body precision accurate to the millimetre. "This is by far the highest levels of quality. "It is said that even the Siemens company officials were shocked.
  All along, the Southern Railway North car with Kawasaki and Bombardier, and Siemens and France Alstom has conducted technical cooperation. Merger would be of great significance in the fusion of advanced technology. Dependent on imports of basic drives, brakes parts will eventually be realized independent production.
  Since its commissioning in 2007, China's total railway mileage has reached 16,000 kilometers. According to Japan companies say, in addition to outside under the will of the Government's rapid advance, "absolutely cannot be taken lightly in the climate varies a great deal of technical experience accumulated by China."
  Last October, the CNR announced that the United States bid Boston Subway project. Kawasaki heavy industries, companies such as Bombardier, while also involved in the bidding process, but ultimately it is with an almost halved prices of Chinese enterprises from their orders. But price is not the only deciding factor.
  Chinese Government representatives to attend negotiations and has repeatedly stressed: "for the purpose of strengthening Sino-American relations (also Chinese companies should be selected). In addition at the local plant also contribute to creating jobs. ”
  Since the start of 2010 after accelerating overseas market, China South locomotive and China CNR excessive competition between enterprises profit deterioration of the vicious circle. Merge will be able to avoid fratricidal war among Chinese enterprises, accelerate the expansion of overseas markets.
  Next 5 years the global railway market is expected to expand to 25 trillion yen. Most of them came from emerging countries in Southeast Asia, South America and Africa.
  According to the European press agency reported on March 9, Spain a foundation for applied economic research, a think-tank study noted that total mileage for current high-speed rail in China ranks first in the world, reaching more than 16,000 square kilometers. Reports also pointed out that China's high-speed rail is the most economic, cost per kilometre between 6 million and 17 million euros, compared to Italy's 61 million euros and Japan 53 million euros is much lower.