CRRC Corporation Limited (known as CRRC) is a Chinese publicly traded rolling stock manufacturer, formed on 1 June 2015 with the merger of CNR and CSR. As of 2016 it had 183,061 employees, and is the largest rolling stock manufacturer in the world. The parent company of CRRC Corp., Ltd. is CRRC Group, a state-owned enterprise that was supervised by the State-owned Assets Supervision and Administration Commission of the State Council. The State Council also owned additional shares via China Securities Finance and Central Huijin Investment.
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History
CNR Group and CSR Group, once one company China National Railway Locomotive & Rolling Stock Industry Corporation (LORIC), were separated in 2002.
In late 2014 CNR Group and CSR Group agreed to merge, subject to approval by the Chinese state - under the agreement CNR Group would formally acquire CSR Group (but CSR Corporation Limited would acquired China CNR Corporation Limited), and the combined business then be renamed to CRRC Group and CRRC Corporation Limited respectively. Rationals given for the merger were increased efficiency, and the ability to better compete internationally with combined resources.
The merger came into effect 1 June 2015, with each CNR share exchanged for 1.1 CSR shares - the combined company became the largest railway rolling stock manufacturer in the world, and had over 90% of the China market. Total employment of the combine was 175,700 persons, and the share capital was valued at CN¥27.289 billion.
After formation, CRRC began efforts to expand overseas; after being awarded a 284 vehicle order (since expanded to 404 vehicles) for metro cars for Massachusetts Bay Transportation Authority's Red and Orange lines with a US$556.6 million bid in October 2014, the company began work on a 13,900 square metres (150,000 sq ft) assembly plant in Springfield, Massachusetts at a former Westinghouse plant, ground breaking on the new plant took place in September 2015.
In mid-2015 production began at a rolling stock plant in Batu Gajah, Perak, Malaysia, a satellite of CRRC Zhuzhou Locomotive, and the corporation's first plant outside China. Additionally the former CSR had acquired Emprendimientos Ferroviarios in Argentina in 2014 and announced in 2016 that they would begin maintenance and production of new rolling stock for export in the country. Argentina had previously purchased a variety of rolling stock from the company over the years, including 704 EMU cars, 81 DMU cars, 44 passenger locomotives, 360 carriages, 107 freight locomotives and 3,500 freight cars, in addition to the 150 200 Series cars for the Subte. In 2017, the Argentine government purchased an additional 200 EMUs from CRRC.
In mid-2015, CRRC formed a freight wagon joint venture, Vertex Railcar, as a minority partner with Hong Kong-based private equity firm Majestic Legend Holdings to establish production in Wilmington, North Carolina at a former Terex facility. CRRC provided railcar designs and some components, and Majestic Legend invested US$6 million; the plant was operational by the beginning of 2016. In August 2016, at the request of a letter from 55 US House of Representatives members alleging that Vertex was being unfairly subsidized by the Chinese government, the United States Department of the Treasury began an investigation into whether the Chinese investment in Vertex constituted a national security risk. 42 US Senators sent a similar letter in September, conveying concerns about the state-owned enterprises behind Vertex. The Treasury Department released its report in December and found that the joint ownership was not a risk.
In late 2015, Yu Weiping, one of the vice-president of the company, stated the company planned to double overseas sales over five years, with North American passenger rail being one target. Interim six month financial results for the new company showed an increase in overseas revenue of over 60%. Half year revenue was CN¥91.8 billion, with a gross profit of CN¥19.5 billion. Non rail revenue (car equipment, generators) was CN¥20.94 billion.
In March 2016, CRRC Qingdao Sifang was awarded a contract to build 400 7000-series cars for the Chicago Transit Authority (CTA), with an option for another 446 cars. The cost of the contract was US$632 million up to US$1.31 billion with options; as a consequence CRRC began development of a US$40 million assembly factory in Chicago.
In March 2017, CRRC was awarded a contract by SEPTA to construct 45 bi-level rail cars with the option for 10 additional cars for delivery in October 2019. CRRC was selected over Hyundai Rotem and Bombardier, which also bid on the bi-level contract and had each produced equipment for SEPTA in the past. Later that month, CRRC was also awarded a contract to build 64 HR4000 cars for the Los Angeles County Metropolitan Transportation Authority (LACMTA) that will replace existing vehicles on the agency's Red and Purple lines, with an option for another 218 cars.
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Subsidiaries
Other investments
On 8 January 2016 CRRC Corporation purchased 13.06% stake of China United Insurance Holding (Chinese: ????) from China Insurance Security Fund for CN¥4.455 billion. It also joint-owned Zhuzhou Times New Material Technology with parent company CRRC Group. In November 2016 the company (via CRRC Zhuzhou Locomotive) confirmed plans to buy ?koda Transportation based in the Czech Republic.
As of 31 December 2016, CRRC was majority owned by CRRC Group directly and indirectly (via CRRC Financial and Securities Investment, Chinese: ?????? for 1.64%) for 55.91% of total share capital (all in A share). Other entity of the central government, such as China Securities Finance (2.87%) and Central Huijin Investment (1.12%), also owned a minority stake. In terms of different shares, BlackRock owned 6.13% H shares in long position (267,971,072 number of shares), or 0.98% in terms of total share capital. Himalaya Capital Investors also owned about 6.13% H shares in long position (267,904,000 number of shares). Other shareholders each owned less than 1% shares in terms of total share capital.
See also
- High-speed rail in China
Footnotes
References
External links
- Official website
Source of article : Wikipedia
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