Strategic Alliance With Chinese IT Giant
03 May 2007 14:34
- Ansaldo STS strengthens its presence in China
- Awarded first contract in China for Communications-Based Train Control (CBTC)signalling system
- The contract is worth over USD10 million for Ansaldo STS
Ansaldo STS (STS:MI), through its subsidiary, Union Switch & Signal International (USSI), signed an industrial and commercial collaboration agreement with the Chinese company, Zhejiang Zheda Insigma Group Company Ltd. (Insigma), which specialises in application software and information technology networks and infrastructures.
The subject of the agreement is the alliance between the two groups to provide mass transit signalling control systems throughout China. In particular, Ansaldo STS will carry out a part of the work awarded to Insigma, which acts as the prime contractor, and will give Insigma a licence for the Chinese territory to use key components of the CBTC system designed and developed by Ansaldo STS as part of the automatic train control systems for mass transit projects. The initial term of the alliance is for ten years.
The first project covered by the agreement, already awarded to Insigma, is the construction of the signalling system of Line 1 of the Shenyang Metro Line Company, totalling 28km. The value of the project for Ansaldo STS is over USD10 million.
Partnerships with Chinese companies, such as the agreement between Insigma and Ansaldo STS, are necessary to adequately cope with the challenges of the Chinese rail and metropolitan transport market, which is on the rise.
Over the next five years, about 1,000km of metropolitan lines are planned to be constructed in the main Chinese towns, with total investments of around USD50 billion. World Railway Market Weekly estimates that, before 2020, 5,000km of new metropolitan lines might be built in the main 25 towns of the country.
The value of the signalling systems for this market is estimated to be around USD400 million for projects during the next two years, and a forecast of additional USD1 billion projects until 2011.
With this agreement, which follows other recent important achievements in China (the most recent of which is a €30 million contract to provide the signalling system for the Shitai dedicated passengers line in North East China), Ansaldo STS strengthens its presence in this country and in the entire Asia-Pacific area, which is considered to be a major developing area for the rail and metropolitan transport business. In this area the group has recently acquired significant contracts also in India, South Korea, Malaysia and Australia.
For more information on this company:
Union Switch & Signal - Complete Rail Signalling and Control Solutions
Copyright 2007 SPG Media Limited a subsidiary of SPG Media Group PLC
