Tuesday, November 10, 2009

Trimble, Chinese engineering firm form joint venture

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Sunnyvale, Calif.-based Trimble Navigation, Ltd. and the China Railway Eryuan Engineering Group Co. (CREEC) have signed a definitive agreement to form a 50-50 joint venture in China. The joint venture will be based in Chengdu, China, where CREEC is headquartered. The deal still requires regulatory approval from the Chinese government.

The companies said the joint venture will leverage Trimble's commercial positioning, communications, and software technologies and CREEC's expertise in rail design and construction to develop and provide digital railway products and services that address the design, construction, and maintenance needs of the Chinese railway industry.

"The next stage of China's railway development will embrace digital solutions, which require higher standards in survey, design, and construction and creates new opportunities at the same time. Thus, the cooperation between the two parties is in line with the long-term development strategy under such prospects," said Qi Baorui, chairman of CREEC.

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"We are extremely pleased to be partnering with CREEC, a world leader in railway design and management," said Steven W. Berglund,Trimble president and CEO. "With China's rate of economic development and modernization, infrastructure projects in the area of transportation are national priorities. By leveraging our respective capabilities, we believe the joint venture will create innovative digital solutions that will increase efficiency and productivity for the railway industry."