Alstom has completed the acquisition of a 51% share in South African rail company Commuter Transport & Locomotive Engineering (CTLE), which specialises in the modernisation of trains.
Following approval from the South African antitrust authorities, the company bought the stake from Commuter Transport Engineering (CTE) and Industrial Development Corporation (IDC), which will remain shareholders.
Alstom South Africa managing director Yvan Eriau will be CEO of the new company, which is named Alstom Ubunye.
The acquisition strengthens Alstom’s presence in South Africa to better address the country and Southern African region transport needs.
With the acquisition complete, Alstom will start the integration of Alstom Ubunye, which counts more than 400 employees and a 80,000m² manufacturing facility.
The new company is expected to benefit from Alstom’s technology and expertise. Under its integration into the Alstom group, Alstom Ubunye’s activities will be expanded to include infrastructure, signalling, components and services.
Eriau said: "To be closer to its customers, Alstom has decided to further invest in South Africa.
"We know we can rely on a highly skilled workforce here in CTLE to seize the new opportunities to come.
"We are very pleased to conclude this new deal with our South African partners to create a stronger industrial and commercial base able to offer a full range of rail products and solutions in Southern Africa."
CTLE, formerly known as Union Carriage & Wagon (UCW), was established in 1964 and it provides rail vehicles for the South African Railways and executes export orders for several Asian and Southern African countries.
Image: CTE CEO Patricia Norris and Alstom Ubunye CEO Yvan Eriau. Photo: courtesy of Alstom.