Tuesday, September 06, 2016

Chicago order fuels 126% growth for China's CRRC

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CRRC MBTA rendering CRRC MBTA rendering

First, in 2014, a $567 million system-wide car order for Boston's MBTA.  Then,  this year, the largest single purchase of rapid transit cars in Chicago history, valued at $1.31 billion. Together, the contracts built momentum for China's CRRC to more than double orders from outside China in the first half of this year, according to a financial release filed with the Shanghai Stock Exchange on Aug. 23, 2016.

Overseas orders reached Yuan 14.88 billion (US$2.24 billion), a 126% increase compared with the corresponding period in 2015. Revenues from outside China contributed to a 2.04% year-on-year increase in net profits, which reached Yuan 4.8 billion (US$719 million). Overall revenues rose 1.04% to Yuan 94.21 billion (US$14.1 billion).

CRRC says it faced “unprecedented challenges” in the first half of this year as demand was affected by a slow recovery in the global economy and downward pressure in China. Nonetheless, CRRC says it sees good omens for growth in the market for rail equipment and pledges to “explore new markets, reduce costs, improve efficiency and support innovation” in the second half.

CRRC (China Rail Rolling Stock Corp.) is a Chinese state-owned rolling stock manufacturer. It was formed on June 1, 2015 with the merger of CNR Corp. Ltd. and CSR Corp. Ltd., and is now among the world’s largest rail rolling stock manufacturers. It has 176,000 employees; its headquarters is in Beijing.

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