Bombardier Expands Presence in China

Feb. 10, 2015

Bombardier Transportation and the New United Group (NUG) have finalized their agreement to establish a new joint venture (JV) for signalling and rail control in China. Each company will have a 50 percent share in the new venture, which will be known as Bombardier NUG Signalling Solutions Co. Ltd.

The new company will focus on rail transportation communication, signalling and integrated monitoring systems for the Chinese mass transit and light rail markets, and be committed to introducing moving-block signalling technology for metro applications. The JV will be located in Changzhou, a city of 4.6 million inhabitants near Shanghai in the Jiangsu province. This region is home to a number of major cities that are planning future growth and metro and tram upgrades.

Bombardier brings its mass transit experience to the new partnership, with its Bombardier Cityflo 150 tram solution and Cityflo 650 CBTC technology already operating in China, on the Suzhou Tram and Tianjin and Shenzhen Metro Lines. NUG brings its extensive knowledge of the Chinese market and links with municipal authorities. Already long-term partners, Bombardier and NUG have co-operated in the Bombardier CPC Propulsion System Co. Ltd. (BCP) joint venture since 2003. BCP is dedicated to producing, marketing and maintaining advanced propulsion and control system products for rail transportation vehicles in China.

Jianwei Zhang, president and chief country representative, Bombardier China said, "Bombardier has been actively participating in the development of China's rail transportation providing a broad range of products, systems and services, including rail signalling equipment. This new joint venture is one of our strategies to ensure our sustainable success in this huge but fiercely competitive market."

Peter Cedervall, president, Bombardier Transportation Rail Control Solutions added, "Bombardier has a strong relationship in the pioneering Chinese rail control market. This latest partnership reflects our successful co-operation and technical reputation. We look forward to working together with NUG to continue to contribute to the exponential growth of mass transit transportation in cities across China."