China’s two railway giants merge
China’s two railway vehicle manufacturers, CNR Corp and CSR Corp will merge into one conglomerate.
Over the last three years, CNR and CSR often found themselves competing against each other for overseas orders. Though the Chinese train makers were rarely underbid by competitors from Germany, France, Canada and Japan, they often had to battle each other with lower prices to win international contracts.
CSR and CNR together once controlled China’s entire highspeed rail market. They have produced about 80 percent of cargo trains in China and the majority of subway trains.
CSR will issue shares to CNR’s shareholders to complete the merger. The new company, which will inherit all the assets, liabilities, businesses, staff, contracts, certificates as well as all other rights and obligations of the two companies, will be named CRRC Corp Ltd. (Photo 4)