Munich, Germany-based Knorr-Bremse Thursday said it has signed an agreement with the Chinese Ministry of Railways to equip 2,720 new cars for the Chinese CRH3 high speed train with braking and door systems. Of these, 1,280 cars will also be fitted with air-conditioning systems from Knorr-Bremse. The company valued the agreement at approximately $744 million, making it “the largest order that Knorr-Bremse has ever won,” the company said.
Knorr-Bremse’s local subsidiaries will work with Chinese joint-venture partners on the order, targeted for completion by 2012.
"This order represents an exceptional success story and provides further confirmation that Knorr-Bremse's strategic approach in China is on track," said Dr. Dieter Wilhelm, chairman of the Rail Vehicle Systems division.
The company credits its long-term presence in China, beginning in the 1970s, as one reason for its success. Knorr-Bremse has its own production facility in Suzhou, thereby meeting Chinese local-content requirements. The company also maintains a development center staffed by about 45 engineers, and has concluded a technology transfer agreement with the Locomotive and Car Research Institute at the Chinese Academy of Railway Sciences. Knorr-Bremse Rail Vehicle Systems has a workforce of roughly 1,400 employees in China.