CRRC splits assets to boost efficiency
China Railway Rolling Stock Corp, the Chinese manufacturer of locomotives and rolling stock, has split its struggling freight train manufacturing business into two units to reduce competition and eliminate excess capacity, as part of a corporate restructuring.
The Beijing-headquartered CRRC said on Monday that the new units will be created under the aegis of Heilongjiang-based CRRC Qiqihar Co and Hubei-based CRRC Yangtze Co, two of its strongest freight train producers. They will also manage eight small CRRC subsidiaries making cargo trains.
Under the plan, CRRC Qiqihar will be managing companies including CRRC Shenyang Co and CRRC Shijiazhuang Co. CRRC Yangtze will be responsible for the operation of CRRC Meishan Co and CRRC Taiyuan Co in the future.
