Tuesday, November 17, 2009

GE, CSR Qishuyan take next step with joint venture

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One day after GE Transportation announced an agreement to provide 300 locomotive assemblies for China HXN5 Mainline locomotives produced by CSR Qishuyan with Evolution® Series diesel engines, the two parties announced “formation of a joint venture company with CSR Qishuyan Locomotive Co., Ltd., a unit of China South Locomotive and Rolling Stock Corporation Ltd., to develop, build, and service GE’s Evolution® Series locomotive diesel engines” in China itself.

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The announcement Tuesday, as per the previous one made Monday, was timed to emphasize "GE's Clean Technology Week in China"activities.

The joint venture is scheduled to launch operations at theend of 2011, including the assembly, testing and overhaul of engine components such aspower assemblies and turbochargers in China.  During the second phase, starting in 2013, engines as well as components will be assembled, tested, and overhauled.

“This new joint venture directly aligns with GE’s strategicdirection to design, manufacture and service product within the region or country in which they are used,” said Tim Schweikert, president of GE Transportation China.  “GE will continue to supply key engine components for the final engine assembly such as turbocharger and fuel injection kits. Providing these key components also helps sustain approximately 120 U.S. manufacturing jobs.”

Erie, Pa.-based GE Transportation, a unit of General Electric Co., says its Chinese joint venture partner has provided more than half of the more than 12,000 diesel locomotives currently in service in the world's most populous nation.

Also Tuesday, GE and China’s Ministry of Railways announcedthat they signed a memorandum of understanding (MOU) to jointly advance high speedrail opportunities in the United States.