INEKON GROUP enters the Chinese tram market

- New Joint Venture will have registered capital more than 1 billion crowns
- Annual sales can reach up to 27.5 billion crowns

Prague 23 July, 2014 - Inekon Group founded in China new Joint Venture Tong Hao Railway Vehicles Corp. (THRV) with registered capital of nearly 1.1 billion crowns (40 mil. €). The new company was founded in partnership with public corporation China Railway Signal and Communication Corp. (CRSC) and Xiangtan Electric Manufacturing Group Corp. (XEMC), with which INEKON GROUP has long-term cooperation. The majority owner of the company will be CRSC with 66 %. INEKON GROUP together with XEMC will have an equal share of 17%. The business activity of new company THRV will be the production and sale of low-floor trams Superior Plus manufactured according to technical documentation done by Inekon Group.

 

Founding of the THRV opens huge potential of the Chinese market. There are 80 cities in China with more than 5,000,000 inhabitants.

Installation of tramway transport is for them the next logical step in the fight against car traffic jams.

The local market offers us enormous potential not only for sales, but also the possibility of production at a lower cost. Thanks to partnership with public corporation CRSC, we have gained a strong partner, who from his position can effectively trade on the entire Chinese market and to individual cities can even help with financing. In September this year, the company attends the first tender for supply 25 trams Superior Plus.

The first step of INEKON GROUP in a newly created company THRV will be the adjustment of the prototype tram Superior Plus for Chinese market. The Czech company will supervise of overall production in the subsequent series. Currently Inekon Group also prepares complete documentation for the construction of new production plant with a capacity of up to 500 units of trams per year. We can expect sales of up to 27.5 billion crowns at an average cost of one tramway set almost 55 million crowns (2 mil. €).

Superior Plus tram is 34 meters long, completely low-floor and have pivoted bogies that are very friendly to the rail tracks. They are also equipped with the innovative on board energy storage system and thus they are partially independent of the overhead line. The Chinese version is also bi-directional. Driver’s cab is therefore at each end of the vehicle and passenger doors are placed on both sides.