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Chinese train maker considering investments in Africa

By Liu Yiyu (www.chinadaily.com)
Updated: 2009-11-20 17:28

China South Locomotive and Rolling Stock Corp (CSR), the largest train maker in China, said it is considering investments in Africa, the company's general manager Zhao Xiaogang said Friday during the 2009 BusinessWeek CEO Forum.

"We are seeking investment opportunities in regions like Africa; the investment may involve infrastructure constructions as well as mergers and acquisitions (M&A)," Zhao said.

Related readings:  Bombardier bags major railway deal  CSR wins contract for Singapore subway train production

Funds raised by the Hong Kong and Shanghai-listed train maker have been used to enlarge capacity, strengthen research and development (R&D), and expand overseas markets, according to the general manager. "We will accelerate such investments," Zhao said.

Zhao also said CSR is mulling over fund-raising either in Shanghai or Hong Kong and expects its growth will maintain a rate of at least 20 percent in the years to come.

According to Zhao, CSR manufactures 70 percent of bullet trains and 50 percent of subways in China. He expects the push for sustainable development and a low carbon economy to power a rising market for the railway industry.

China's high-speed railways will cover 12,000 kilometers by 2012, Zhao said.