China plan to create World’s largest rolling stock manufacturer

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China’s state-owned rolling stock builders China North Locomotive and Rolling Stock Corp together with rival China South Locomotive and Rolling Stock Corp could soon merge to form a giant company. If approved, the company would own 90 per cent of China’s rail equipment manufacturing and would be larger than Siemens and Alstom.

The move would aim to increase operating income by more than three times over its first five years to £14.6bn. It would also see China’s rail equipment business boosted and the company become a World leader of its kind.

China is already trying to promote its export credentials through the company Chinese Sourced Railway Equipment, which has an office in the UK. Ian Yeowart’s open access company Alliance Rail is considering buying its rolling stock from China.

However, the plans – which would be complex with each company having numerous subsidiaries that include joint ventures – are opposed by some within the government who would prefer to see competition remain within the market.

China is expanding its own rail network at such a pace that it is expected to remain the world’s largest single rail market over the next decade. The plans must still be officially approved by the government.

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