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Bombardier’s Joint Venture Wins Contract to Provide Propulsion and Control Equipment in China

  • Latest contract highlights Bombardier’s strong position as a supplier to the Chinese rail market
  • In 2015, Bombardier has won four contracts in China to supply BOMBARDIER MITRAC propulsion equipment

September 9, 2015 Berlin Transportation –Rail technology leader Bombardier Transportation announced today that its joint venture Bombardier CPC Propulsion System Co. Ltd. (BCP), has signed another contract with the Chinese New United Group (NUG) to provide MITRAC propulsion and control equipment for the Beijing Mass Transit Railway Operation Corporation. This is the fourth contract that the joint venture has signed for Chinese urban mass transit systems in 2015.

The total value of this year’s four contracts is approximately 866 million CNY ($ 136 million US, 122 million euro). BT’s direct share in the four contracts is valued at approximately 193 million CNY ($30 million US, 27 million euro). Bombardier owns 50% of the shares in BCP and the joint venture is jointly controlled by Bombardier and New United Group.[1]

This most recent contract is for Beijing Metro Line 16 and its scope includes engineering, manufacturing, testing, commissioning as well as the initial delivery of spare parts for traction converters. Jianwei Zhang, President and Chief Country Representative, Bombardier China, said, “This latest order is one of our eleven public tenders won in China for propulsions and control equipment since 2014. We are very proud to continuously power the rapid development of Chinese urban mass transit systems with our proven and reliable technology. As always, Bombardier is committed to delivering high quality products on time.”

The equipment for the recent four contracts will be supplied from Bombardier Transportation’s facilities in Västerås, Sweden and Changzhou, China. Once delivered, Chinese vehicle manufacturers will mount the components on metro trains for operation in the Chinese cities of Beijing, Shanghai, Shenzhen and Tianjin. The customer’s decision to collaborate with Bombardier again proves the company’s strong position in supplying propulsion equipment to external rolling stock manufacturers. This includes the delivery of components and hardware but also providing full support during integration, making Bombardier one of the top suppliers to the Chinese mass transport market. With eleven public tenders won since 2014, the Bombardier joint venture will supply the Chinese market with more than 2,500 metro cars equipped with MITRAC propulsion equipment.

1 Contract for Beijing Metro Line 16: Total JV value: 363 million CNY, $57 million US. Bombardier direct share : 57 million CNY, $9 million US
Contract for Shanghai Line 9, Phase 3: Total JV value: 187 million CNY, $29 million US. Bombardier direct share: 57 million CNY, $9 million US
Contract for Shenzhen Line 7: Total JV value: 171 million CNY, $27 million US. Bombardier direct share: 53 million CNY, $8 million US
Contract for Tianjin Line 5: Total JV value: 145 million CNY, $23 million US. Bombardier direct share: 26 million CNY, $4 million US

About Bombardier Transportation

Bombardier Transportation, a global leader in rail technology, offers the broadest portfolio in the rail industry and delivers innovative products and services that set new standards in sustainable mobility. BOMBARDIER ECO4 technologies – built on the four cornerstones of energy, efficiency, economy, and ecology – conserve energy, protect the environment, and help to improve total train performance for operators and passengers. Bombardier Transportation is headquartered in Berlin, Germany, and has a very diverse customer base with products or services in more than 60 countries. It has an installed base of over 100,000 vehicles worldwide.

About Bombardier

Bombardier is the world’s leading manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.

Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America Indices. In the fiscal year ended December 31, 2014, we posted revenues of $20.1 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

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