UK-based engineering firm Ricardo has completed the acquisition of Lloyd’s Register Rail (LR Rail), following approval from the Chinese Government to transfer a small joint venture owned by Lloyd’s Register Group and China Classification Society (CCS).
Initially, Ricardo agreed to buy the rail activities of Lloyd’s Register Group for £42.5m in April last year.
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By GlobalDataUnder the development, the acquired business was combined with Ricardo’s existing rail industry expertise to launch Ricardo Rail.
Ricardo CEO Dave Shemmans said: "The Ricardo Rail business is performing well across its existing international footprint and with the addition of the Chinese JV, we are now well placed to maximise our position in this fast-growing and increasingly important rail market.
"I would also like to extend a warm welcome to the former CCS LR JV employees who have today joined the Ricardo family."
LR Rail, which had a staff of 440 rail engineers and specialists, was responsible for offering services such as rolling stock design, signalling and train control, intelligent rail systems, operational efficiency improvement, training and independent assurance services.
With the acquisition completed, Ricardo continues to grow its international footprint into the important Chinese rail market.
Ricardo Rail managing director Paul Seller said: "China is an important rail market, having built the world’s largest high speed rail network over the last 15 years.
"Almost 20,000km of new high speed lines carry 800m passengers per year, half of the total high speed rail traffic in the world.
"A key focus for the rail sector now is on urban transit systems with approvals or construction already started in over 80 cities.
"The export market, particularly across South East Asia, will also become increasingly important to its domestic equipment manufacturers."
Image: The acquisition allows Ricardo to continue growing its international footprint into the Chinese rail market. Photo: courtesy of Ricardo.
