Company News

China's CRRC wins $1.3 bln deal to supply Chicago rail cars

SHANGHAI, March 10 (Reuters) - China’s CRRC Corp has won a $1.31 billion order to build rail cars for Chicago, the city’s transit authority said, marking the train maker’s second major supplier deal in the United States.

The Chicago Transit Authority (CTA) said on Wednesday that it had awarded the order to build 846 railcars to CRRC subsidiary CSR Sifang America, which had submitted the lowest bid. It did not name the other bidders.

State-owned CRRC Corp, the world’s biggest train maker by revenue, was not available to comment on Thursday. The company, formed from the merger of former rivals CNR Corp and China CSR, won its first U.S. contract in 2014 when CNR was awarded a $567 million deal to supply subway trains to Boston.

Chicago will first place a base order of 400 cars, with options to buy the remainder in the coming years, the CTA said. CSR will build a new $40 million factory in the city, with an aim to see the first cars going into service in 2020.

Egged on by Beijing, China’s railway firms are aggressively bidding for contracts in overseas markets including the United States. Chinese firms have so far expressed interest in building high-speed rail lines in California and Las Vegas. (Reporting by Brenda Goh; Editing by Stephen Coates)