Bombardier and the China Ministry of Railways (MOR) signed today a long-term strategic cooperation framework agreement related to the purchase by MOR of additional high-speed electric multiple unit trainsets from Bombardier and its joint venture Bombardier Sifang Power (Qingdao) Transportation Ltd. (BSP). The agreement also covers the creation of a maintenance center dedicated to 200 km/h electric multiple unit trainsets. This center, with a 250-trainset maintenance capacity, is to be established in Guangzhou in 2007. Final agreement is expected to be completed within the next weeks.
Through this 20-year agreement, Bombardier will supply the design and equipment for the center. The MOR will supply land and the building. Bombardier will also supply spare parts, maintenance management services, technical support and training of personnel.
Laurent Beaudoin, Bombardier Chairman of the Board and Chief Executive Officer, accompanied by Bombardier Transportation President, André Navarri, and Bombardier Chief Country Representative in China, Jianwei Zhang, signed the agreement with China Ministry of Railways’ Vice Minister Hu Yadong, in the presence of leaders from several departments.
During the signing ceremony, André Navarri commented: “This agreement is another testimony of Bombardier’s long-standing commitment to the Chinese market. Our aim has always been to be a full-fledged partner and contributor to the development of the railway network in China. We want to support this development not only in supplying products, but also in providing value-added services and know-how that will ensure long-term efficiency and success to the operator.”
Vice Minister Hu Yadong responded that: “The history of friendly cooperation between MOR and Bombardier goes back many years, and this partnership has proven meaningful to both parties. It is in this same spirit that we look forward to this future achievement.”
Bombardier participates in three joint ventures in China. The first one, Changchun Bombardier Railway Vehicles Co. Ltd. (CBRC), is dedicated to the production of metro vehicles. The second one, Bombardier Sifang Power (Qingdao) Transportation Ltd., manufactures intercity passenger coaches for the Chinese Ministry of Railways. The other joint venture, Bombardier – CPC Propulsion Systems Co. Ltd. (BCP) - is involved in the production, marketing and maintenance of propulsion components for rail vehicles.
Bombardier’s longstanding business relationship with China began 50 years ago. Including its joint ventures, Bombardier currently employs 1,400 people in China. In addition to its rail transportation operations, Bombardier is the number one supplier to the Chinese regional aircraft market with an installed base of 31 aircrafts operated by six airlines. It is also the top-ranked manufacturer of business aircraft in the country.
About Bombardier
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2005, were $15.8 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.
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