Monday, September 20, 2010

Invensys, TEG enter into joint venture

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Signaling and train control supplier Invensys Rail, Britain, and Zhuzhou CSR Times Electric Co. Ltd. (TEG), a division of Chinese rolling stock manufacturer CSR Corporation Ltd., have entered into a joint venture to market both companies’ systems throughout China and the rest of the world.

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Under the terms of the agreement, Invensys Rail will manufacture and sell its Westrace interlocking system in China. TEG and Invensys will work together to sell their train control and signaling systems through TEG into the expanding Chinese domestic public transit market, which is worth an estimated $670 million a year for the foreseeable future.

As well, CSR’s rolling stock operation and Invensys Rail will jointly bid on a number of “major international contracts,” the companies said in a joint statement. Invensys Rail will become CSR’s exclusive signaling supplier “on an agreed set of global projects that combine rolling stock and signaling solutions.” Initial projects are in public transit and span the Middle East, India, and Southeast Asia.

Commenting on the agreement, James Drummond, CEO of Invensys Rail, said, “China is a strategically important market for us. The country is investing heavily in its railway infrastructure and represents a significant growth opportunity for us in Asia. We are therefore delighted to enter into these agreements with CSR and TEG, who are not only key players in China but are becoming an increasing force in the global railway market.”

Ulf Henriksson, CEO of Invensys plc, said, “I welcome the signing of these agreements with CSR and TEG as they represent a new business model that allows us to gain greater access tothe significant rail infrastructure and mass transit investment in China and elsewhere in the world.  The combination of our train control and signaling technology and CSR’s expertise and efficiency in rolling stock will create a very competitive offering to rail operators around the world.”