Vossloh Fastening Systems has received a €40m contract to deliver rail fastening systems for a newly built high-speed railway line in China.
The fastening systems will be installed on the high-speed line between the cities Hangzhou and Taizhou, south of Shanghai.
The deliveries are slated to begin this year, but the bulk of the order will be supplied from next year onwards.
Vossloh noted that the order confirms its expectation that its sales in China will increase significantly in 2020 compared to revenue generated this year.
In 2018, the company won three major orders in China, with a combined value of around €85m. Majority of deliveries under this contract will be completed this year.
Vossloh CEO Andreas Busemann said: “The Vossloh Group has started the fiscal year 2019 with high order intakes. This new order from China continues this trend and underscores again strongly our continued good market positioning in the high-speed segment for fastening systems in the Chinese market.
“Since the first major order in fiscal year 2018, the order backlog in the Chinese company of the business unit has more than tripled.”
Vossloh has been operating in China since 2006. Its local subsidiary Vossloh Fastening Systems China, which is based in Kunshan, has been engaged in delivering rail fastening systems for domestic high-speed lines.
Currently, China operates the largest high-speed rail system in the world with a network spanning more than 25,000km, which is expected to increase to 38,000km by 2025.
Several additional high-speed projects are currently in the planning stage or under-development.
Last month, Vossloh secured contracts with a combined value of up to €100m to deliver switch components to Sweden and Italy.