An announcement on 30 December confirmed the merger of the two state-owned rolling stock companies in China. China CNR Corporation and CSR Corporation will become China Railway Rolling Stock Corporation (CRRC).
Each CNR share will be exchanged for 1.1 shares in CSR; CNR will then be de-listed on the Hong Kong and Shanghai stock exchanges, and CSR will be renamed, creating the world’s largest rail supplier with a combined annual turnover of around EUR12.9bn (more than twice that of Bombardier Transportation). CSSR will have over 90% of the domestic market in China, and be well placed to increase its global share in heavy rail, metros and tramways. CNR recently won its first contract in Boston – although as of January this was subject to a legal challenge from Hyundai-Rotem questioning an “unreasonably low” bid.
CNR has factories in Changchun and Dalian; while CSR has factories in Puzhen, Sifang, and Zhuzhou.