Bombardier Joint Venture to Provide Propulsion, Control Equipment in China

Posted on September 9, 2015

Beijing Subway Line 2 Train by Jucember via Wikimedia Commons
Beijing Subway Line 2 Train by Jucember via Wikimedia Commons

Bombardier Transportation announced 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 Corp. 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 $136 million. BT's direct share in the four contracts is valued at approximately $30 million. 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 Vasteras, 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.

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: $57 million. Bombardier direct share : $9 million
Contract for Shanghai Line 9, Phase 3: Total JV value: $29 million. Bombardier direct share: $9 million
Contract for Shenzhen Line 7: Total JV value: $27 million. Bombardier direct share: $8 million
Contract for Tianjin Line 5: Total JV value: $23 million. Bombardier direct share: $4 million

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