SHANGHAI, March 27 Chinese rail car manufacturer
CRRC Corp will build 64 subway cars for
the Los Angeles metro as part of an order that could be worth as
much as $647 million.
A CRRC executive confirmed the news on Monday, which was
first announced by the Los Angeles County Metropolitan
Transportation Authority (LACMTA) late last week.
The LACMTA said these cars will be used for the metro's red
and purple lines, and they may also opt to buy another 218
subway cars, bringing the total order value to about $647
million, it said.
The contract, which is the Chinese company's third major win
in the United States, comes ahead of an expected meeting between
Chinese President Xi Jinping and U.S. President Donald Trump
next month in Florida, where openness to trade and investment
between the two nations will be a central theme.
"The company had the highest-rated technical offer and
lowest price while offering the most robust local employment
program and highest U.S. component content," the LACMTA stated,
adding that it has already met Washington's "Buy America"
provisions, which require 60 percent of components to be made in
CRRC plans to invest in a Los Angeles-based facility to
manufacture major components, including propulsion and
air-conditioning. It is expected to deliver the first car by
2020, and all 64 cars by September 2021, it added.
The metro cars' exterior shells will be manufactured in one
of CRRC's factories in northeastern China, while the final
assembling will be done in Springfield, Massachusetts, where the
company is also manufacturing trains for Boston's subway system,
the LACMTA added.
This win reflects how CRRC has been steadily gaining ground
in the United States. The company had won a $567 million Boston
contract in 2014, and another bid worth $1.3 billion last year
to build rail cars for Chicago.
Tony Liu, assistant marketing director at CRRC's Qingdao
Sifang unit, which won the Chicago project, told Reuters last
week that the firm was focused on several other U.S. projects,
including San Francisco's Bay Area Rapid Transit project.
"The rolling stock market in the United States will come to
another round of renewal for the existing fleet," Liu said. "We
see great potential for the market in the United States in the
(Reporting by Brenda Goh; Editing by Sherry Jacob-Phillips)