Bombardier joint venture wins US$1.5B order for 40 high-speed trains in China

THE CANADIAN PRESS

BERLIN - Bombardier Transportation (TSX:BBD.B) said Wednesday its Chinese joint venture, Bombardier Sifang Power Transportation Ltd., has won a US$1.5-billion order for 40 high-speed trains.

The order from the Chinese Ministry of Railways is for 640 cars, with Bombardier Transportation's share valued at about US$596 million.

"It is always good news to sign a contract of this magnitude, but especially when the order is based on a customer's prior positive experience with our products and trust in our technology leadership," stated Bombardier Transportation president Andre Navarri.

"China is one of the most important rail markets in the world, and we are pleased to be continuing our positive relationship with the Ministry of Railways."

Montreal-based Bombardier said 20 of the new electric-multiple-unit trains will be specially designed for overnight service and fitted with sleeping berth interiors. The remaining 20 trains will be upgraded, 16-car versions of the eight-car trains now being delivered to the Ministry of Railways as part of previous orders.

The trainsets will be capable of speeds up to 250 kilometres per hour and will will be made in Qingdao, China.

First deliveries are scheduled for February 2009, with delivery of the final train expected the following year.

Bombardier Transportation has its global headquarters in Berlin, with a presence in more than 60 countries.

© The Canadian Press, 2007