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ABC-NACO Begins Second Railcar Joint Venture in China with Suspension System.

ABC-NACO, Inc., Lombard, Illinois, is forming an equity joint venture with Zhuzhou Rolling Stock Works, a steel foundry located in Hunan Province, China. The joint venture will be for the manufacture and sale of the ABC-NACO Swing Motion design suspension systems and related components to the Chinese market. ABC-NACO expects to formalize the joint venture agreement by November. Zhuzhou will be the second equity joint venture in China with which ABC-NACO is involved.

"We have been very successful in our joint venture producing railroad wheels with our Chinese partner Datong Locomotive Works in the Shanxi Province," said Vaughn Makary, ABC-NACO president and CEO. "In a little more than two years, the joint venture has about 50% of the total freight car wheel market. We believe the Chinese market has significant potential for our advanced technology product."

The new joint venture company will be located at the existing foundry of Zhuzhou Rolling Stock Works. ABC-NACO will own 40% of the joint venture with the balance owned by its Chinese partner. Zhuzhou projects that the Swing Motion suspension system ultimately could be used on 75% of the new freight cars in China.

Before production begins at the Zhuzhou Rolling Stock Works, Chinese orders for Swing Motion suspensions will be produced by ABC-NACO. An initial order for 300 sets will be delivered to the China in October 2001 with the potential to supply up to 1000 sets in total.

ABC-NACO manufactures freight car, locomotive and passenger suspension and coupling systems, wheels and mounted wheel sets to the rail industry.
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Comment:ABC-NACO Begins Second Railcar Joint Venture in China with Suspension System.
Publication:Modern Casting
Article Type:Brief Article
Geographic Code:9CHIN
Date:Sep 1, 2001
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