Bombardier Transportation and the New United Group (NUG) finalized an agreement to establish a new joint venture (JV) for signaling and rail control in China. Each company will have a 50% share in the new venture, which will be known as Bombardier NUG Signaling Solutions Co. Ltd.

The new company will focus on rail transportation communication, signaling and integrated monitoring systems for the Chinese mass transit and light rail markets and be committed to introducing moving-block signaling technology for metro applications. The JV will be located in Changzhou, a city of 4.6 million inhabitants near Shanghai in the Jiangsu province. This region is home to a number of major cities that are planning future growth and metro and tram upgrades.

Bombardier brings its proven mass transit experience to the new partnership, with its Bombardier CityFlo 650 CBTC technology already operating in China, on the Suzhou Tram and Tianjin and Shenzhen Metro Lines.

NUG brings its extensive knowledge of the Chinese market and links with municipal authorities. Already long-term partners, Bombardier and NUG have co-operated in the Bombardier CPC Propulsion System Co., Ltd. (BCP) joint venture since 2003. BCP is dedicated to producing, marketing and maintaining advanced propulsion and control system products for rail transportation vehicles in China.