China Railway Rolling Stock Corp (CRRC) plans to establish 11 regional branches throughout the world by 2020 and further target key markets including Europe, North America, Russia and Central Asian countries, a top executive said, quoted by Chinadaily.
The 11 regional branches will be set up in countries such as Russia, the United Kingdom, South Africa and Australia. The company wants to manufacture trains, purchase parts, and build maintenance and service facilities through a localization strategy and hiring local employees in key markets by 2020.
CRRC hopes to take a 10 to 15 percent global market share and is expecting to raise the total volume of its overseas orders to USD 15 billion in 2020.
“Even though a lot of money can be made from selling trains, providing maintenance services and selling trains directly in overseas markets can also be profitable and convenient,” said Feng Hao, a rail transportation researcher at the National Development and Reform Commission.
CRRC President Xi Guohua said the group plans to conclude one or two overseas acquisition deals this year and accelerate exports of both its products and technical standards for electric trains, for freight and passenger transport.
“Our market development strategy has already shifted from only shipping trains to overseas markets to building a global network to compete with established foreign rivals,” CRRC President said.
According to CRRC’s financial report, in 2016, the revenue of the company decreased by 5.74% to RMB 224 billion (USD 32.97 billion). In 2016, the company’s newly signed orders amounted to RMB 262.6 billion (USD 38.6 billion), of which, contracted sales generated by the international businesses amounted USD 8.1 billion, representing a year-on-year increase of 40%.
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