Bombardier and the China Ministry of Railways Extend Cooperation One Step Further.
"This cooperation agreement represents one more step in the long-term strategic partnership between Bombardier and the MOR," said Laurent Beaudoin, Chairman of the Board and Chief Executive Officer, Bombardier Inc., after signing the agreement with Chinese Minister of Railways Liu Zhijun, at a ceremony in presence of People's Republic of China President Hu Jintao and Canadian Prime Minister Paul Martin.
The framework agreement signed on June 27 referred to the MOR's intention to purchase, whereas the cooperation agreement signed today stated that the MOR commits to purchase additional high-speed electrical multiple unit trainsets (EMUs) from Bombardier and its joint venture Bombardier Sifang Power (Qingdao) Transportation Ltd. (BSP), thereby extending cooperation one step further. The cooperation agreement confirms that the Corporation and the MOR will jointly establish a maintenance center for 200 km/h EMUs with a 250-trainset maintenance capacity.
In addition, Bombardier and the MOR will collaborate to develop a new type of high-speed EMU trainset, not covered by the framework agreement signed on June 27, which could reach speeds over 200 km/h, feature sleeping coaches and a full restaurant.
Bombardier participates in three joint ventures in China. The first one, Bombardier Sifang Power (Qingdao) Transportation Ltd., manufactures intercity passenger coaches. The second one, Changchun Bombardier Railway Vehicles Co. Ltd. (CBRC), is dedicated to the production of metro vehicles. The other joint venture, Bombardier - CPC Propulsion Systems Co. Ltd. (BCP) - is involved in the production, marketing and maintenance of propulsion systems for rail vehicles.
Bombardier's longstanding business relationship with China began 50 years ago. Including its joint ventures, Bombardier currently employs 1,400 people in China. In addition to its rail transportation operations, Bombardier is the number one supplier to the Chinese regional aircraft market with an installed base of 31 aircraft operated by six airlines. It is also the top-ranked manufacturer of business aircraft in the country.
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2005, were $15.8 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.
BOMBARDIER TRANSPORTATION (TSX:BBD.MV.A) (TSX:BBD.SV.B)
|Printer friendly Cite/link Email Feedback|
|Date:||Sep 9, 2005|
|Previous Article:||Financial Times and Symantec Conduct Survey and Web Seminar on Business Continuity Planning to Protect Information Assets and Minimize Risk.|
|Next Article:||Black Box Corporation Confirms Investor Day.|