Bombardier Transportation, a subsidiary of transportation solutions provider Bombardier Inc. (BBD_A.TO, BBD_B.TO), Friday said its Chinese joint venture received CNY 5.2 billion or US$ 761 million order for 40 additional CRH1 high-speed trainsets from the Chinese Ministry of Railways.
Bombardier's share of the contract, which is awarded for its Chinese joint venture Bombardier Sifang (Qingdao) Transportation Ltd., is valued at about CNY 2.5 billion or US$ 373 million. The Canadian company said this is the fourth contract from China for CRH1 High-Speed trains, which built by Bombardier Sifang.
Bombardier Sifang, founded in 1998, is the joint venture between Bombardier and CSR Sifang Rolling Stock Co., Ltd, to make high speed trains for China and other countries around the world.
Bombardier said it intends to start the delivery of the additional trains in September, and to complete the supply by the end of May. With this additional order, a total of 1280 CRH1 cars for operational speed of up to 250km/h have been ordered from Bombardier Sifang in China so far. Amongst other features, the new CRH1 trains have been enhanced with a dedicated VIP car incorporating 1st class seating.
Bombardier said this order complements the largest single order for rail passenger cars placed at one time in Chinese rail history. Amongst other additional features, the new CRH1 trains have been enhanced with a dedicated VIP car incorporating 1st class seating.
Jianwei Zhang, president and chief country representative, Bombardier China, said, "The Chinese market represents a tremendous opportunity to us where we have been able to succeed by offering innovative and highly reliable products as well as by establishing local roots. Today, Bombardier holds a top level presence in this exciting market and we are committed to continue supporting our customers in China."
In June, China Railway High-speed ordered 20 CRH1 traisets. China Railway High-speed or CHR is the main operator of the regular high-speed trains through the Hefei-Fuzhou High-Speed Rail Line, an important section of the Beijing-Fuzhou railway line. CHR operates CRH1, CRH2, CRH3 and CRH5 trains.
BBD_A is currently trading at C$4.75 per share, up C$0.01 or 0.21%, on the Toronto Stock Exchange. In the past 52-week period, the share had traded in a range of C$3.45 to C$6.24.
BBD_B.TO is currently trading at C$4.74 per share, down $0.01 or 0.21%.
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