Turnout Specialist BWG Establishes Joint Venture in China for Biggest Project Contract in their History
02 May 2007 15:56
The order from various Chinese railway companies covers 320 special high-speed turnouts for three Chinese railway companies, based on the globally leading high-speed turnout technology of BWG. With a value of €120 million, it is the biggest project package order in the history of BWG.
"Since the early 1990s we have been consistently striving to enter the Chinese railways market - a market with an enormous growth potential. Our employees have done an excellent job for many years. The signing of the contract rewards our longtime efforts and builds the foundation for a long-term cooperation," Thomas Kalkbrenner, CEO of BWG, said.
Furthermore, this success underlines the attractiveness of voestalpine's high-speed technology for the railway industry, as, in addition to the turnout sector, the rail segment has also been able to conclude a large supply contract for high-speed rails. After market leadership in Europe and North America as well as expansion to India, the turnout branch of voestalpine has now also entered the Chinese market. The railway systems division of the voestalpine group is now represented with production locations in all long-term dynamically growing markets in the world.
BWG with industrial leadership of the joint venture-company
The Chinese partner China Railway Shanhaiguan Bridge Group (CRSGB) and BWG, together with its parent company, VAE, each have a 50% stake in the new turnout construction company, Chinese New Turnout Technologies (CNTT), with BWG assuming the industrial leadership. Within this joint venture, a new turnout production facility will be built on the Chinese partner's site in Quihuangdao, approximately 300km east of Peking.
Total investments in the new company will amount to €21,5 million, half of which is accounted for by each of the two joint venture partners. The new company is intended to have approximately 300 employees with 210 of them working in production.
Supply contract based on internationally successful BWG technology
All railway lines, in which the 320 turnouts of this major order will be installed, are already under construction. They are built in slab track - construction type Rheda. This system has proven itself at the major project BWG finished in 2002: the high-speed line Cologne/Rhine-Main. "The Cologne/Rhine-Main reference line is recognized worldwide and, together with applications at further major projects in Taiwan and in the Netherlands, it has finally convinced the Chinese railway companies," Mr. Kalkbrenner explained.
The supply contract lasts until 2009. Assembly of the turnouts, which initially will be supplied from German BWG production, will start in the newly constructed factory in late summer, 2007. From the beginning of 2008, further production steps in the parts fabrication will be relocated to the Chinese joint venture factory. From 2009 on, the high-speed turnouts will finally be completely produced in China. Chinese and German engineers will subsequently work on developments destined exclusively for the Chinese railway market. BWG will contribute the required know-how, and BWG's experts will support the joint venture technologically in the start-up phase with their experience acquired in numerous projects.
For more information on this company:
BWG - Turnout Technology for High-Speed and Standard Railways, Urban Traffic and Heavy Haul Equipment
Copyright 2007 SPG Media Limited a subsidiary of SPG Media Group PLC
