The hottest focus is on the merger of CSR and CNR

2022-10-23
  • Detail

Focus: China's leading CSR and CNR merger is to conquer the world

focus: China's leading CSR and CNR merger is to conquer the world

China Construction machinery information

when meeting with an Indian official in March this year, Chinese Premier Li Keqiang said that the combination of China's high-speed rail technology and cost advantages with India's huge population will achieve a win-win situation. And such a statement is usually the favorite statement of European and American multinational companies when they visit China

this country has obviously been fed up with the role of being under the tower of the global industrial chain, relying on the export of cheap labor or the OEM of multinational companies to produce products and equipment to obtain meager profits

now, 90% of the world's Christmas decorations, 75% of toys and more than 80% made in China are produced. We hope to continue to conquer the whole world through the export of high-speed rail and rail transit products

on October 23, CNR, a state-owned locomotive manufacturer in China, won an order worth more than $500million for the Boston metro system in the United States. Not long ago, a bidding consortium formed by CSR, another state-owned locomotive manufacturer, will submit a letter of intent to California's $68billion high-speed rail project

this is regarded as a sign that China's high-speed rail and rail transit products have landed in the European and American high-end equipment manufacturing market. According to the latest news, the competent authorities of China's state-owned railway company are trying to integrate CSR and CNR, two state-owned locomotive manufacturers that are widely used and tend to be saturated in foreign markets. China Business News quoted a person familiar with the matter as saying that the State Council of China requested to promote the merger of the north south railway vehicle, which was supervised by State Councilor Wang Yong

on October 27, CSR (60 lithium-ion battery technology progress 1766), CNR (601299) and its listed company time new material (600458) announced that the company's shares were suspended due to important matters not announced. Previously, the trading of CSR's southbound Huitong (000920) has been suspended due to confirmation of major asset restructuring

previously, CSR and CNR had been suspended once in early September due to media reports of merger and reorganization. At that time, it was reported that SASAC was pushing CSR and CNR to re integrate into one company, so that China's high-speed rail technology could be better exported overseas

high speed rail and rail transit technology are changing China in unexpected ways. More than half of the subway shield machines in the world are currently operating in China. The large-scale construction of the subway makes it easy for huge crowds to reach the high-speed railway station. In less than seven years, China has built a high-speed railway network larger than the high-speed railway built by Japan and Germany in decades. China plans to build a high-speed railway with a total length of nearly 16000 kilometers and connecting 24 major cities in 15 years. At present, nearly half of this plan has been completed. Of course, China prefers its high-speed rail to the global market

in order to make more countries accept China's high-speed rail technology and products, even Chinese Premier Li Keqiang joined the ranks of Chinese high-speed rail salesmen. From Thailand to Eastern Europe to Africa, Li Keqiang will recommend China's high-speed rail to the local people every time he visits

China Southern Railway Group and China Northern Railway Group were originally one, which was split from the former China Railway Rolling Stock Industry Corporation in 2000. With the support of the Chinese government, the pace of "going out" of the North South Railway has accelerated in recent years, and mutual competition is inevitable. It is reported that CNR and CSR have submitted bids for the California high-speed rail project

"North South dispute" has seriously affected the overseas expansion of the two companies

at the beginning of last year, a dispute occurred between the north and South vehicles on the bidding project in Argentina. CSR intercepted an order of 1 billion yuan from Argentina at an ultra-low price. Together with CITIC construction, CNR sued CSR for malicious competition to the China Chamber of electrical and mechanical commerce, believing that this move had reduced Argentina's trust in the price of China's rail transit equipment. CSR responded that they were also forced to do so because the factory orders were exhausted

in order to avoid vicious competition between CSR and CNR, the Ministry of Railways and SASAC once considered merging the two companies, but there was a lot of controversy among all parties, including the national development and Reform Commission. According to previous media reports, the merger of CSR and CNR had surfaced as early as 2003; In 2010, SASAC, the Ministry of Railways and other relevant departments also discussed and discussed the merger of CSR and CNR

in addition, at present, the businesses of CSR and CNR are highly consistent, and there is homogeneous competition. In addition, there is a waste of resources in technology introduction and product research and development. Statistics show that China spent 90billion yuan on the introduction of high-speed rail technology, five times that of South Korea

CNR won an order for the construction of metro vehicles for the Boston metro system ("t" Metro) on October 23, with a contract value of $567million. This transaction is the first major infrastructure contract won by a Chinese company in North America. It is understood that the order was open to global bidding in May this year. CNR and CSR China, Bombardier Canada, Alstom France, Kawasaki heavy industries of Japan, kraft Spain and other global rail transit equipment manufacturing enterprises bid separately. CNR finally won

in this regard, FT columnist Lex said that as the first step to enter the North American market, this major victory is more spiritual than financial. In terms of revenue, CNR is China's largest locomotive equipment manufacturer listed in Hong Kong, barely surpassing CSR with a revenue of US $15.7 billion last year. Boston's orders are only 3.6% of this figure, and locomotives are only delivered in 2018, so it will take many years to realize revenue

moreover, CNR submitted the lowest bid among all bidders: about half of Bombardier, which offered a higher bid. China previously formulated the preconditions for foreign capital to build production capacity in China. In response, CNR promised to build a locomotive assembly plant in the United States, and the localization rate should reach 60%

in this regard, CNR insiders explained that although this is not the largest amount of subway exports, it is of symbolic significance. CNR has been exporting subway for 20 years, and the grade of the destination countries is constantly improving. "At first, it was exported to some third world countries. Ten years ago, it was exported to Australia, Singapore, New Zealand and other developed countries. Now it is exported to the United States, marking that the subway produced by CNR has officially opened the door to North America." He said

the person said that there is a huge market behind this: "we also hope to win more orders in the future. The success of this project also marks that Chinese local enterprises have a certain advantage in the positive competition with international giants such as Bombardier."

according to the statistical data of SCI Verkehr consulting company, the German Rail Transit Authority, the global rail transit equipment market capacity was 143billion euros in 2012. By 2016, the total market capacity will reach 168 billion euros, and the average annual growth rate from 2011 to 2016 is 3.3%. In terms of various regions, Asia and Western Europe are the largest markets in the world, with market capacity of 43.4 billion euros and 39.7 billion euros respectively, while Africa, Latin America and other places show higher growth rates, with annual growth rates expected to reach 10.6% and 5.0%

in the next 10 years, the construction speed of global high-speed rail will accelerate, and the new mileage will reach 10000 kilometers. If calculated according to the cost of 300million yuan per kilometer, the value of overseas high-speed rail infrastructure market will be about 3trillion yuan, and the market value of high-speed rail equipment will reach about 600billion yuan

Chinese high-speed rail equipment manufacturers obviously don't want to miss such a huge market

the top five manufacturers represented by DuPont in the global rail transit equipment industry are Bombardier, Siemens, Alstom, CSR and CNR, with a total market share of more than 50%. The business of the top three manufacturers is mainly concentrated in Western Europe and North America. Relying on the heating plastic resin, China's north south railway vehicle is expected to become the world's two largest rail transit equipment manufacturers in China's domestic market, which develops rapidly with the rise of temperature

the domestic high-speed railway equipment of CNRS has great advantages in price

in July this year, the World Bank released an analysis report on China's high-speed rail, which pointed out that the project with a speed of 350 kilometers per hour was 129 million yuan/km; In contrast, the construction cost of European high-speed rail (with a design speed of 300 kilometers per hour and above) is as high as 150 to 240 million yuan per kilometer. The construction cost of California high-speed railway (excluding land, rolling stock and interest during construction) is even as high as US $52 million per kilometer, about 320million yuan. The cost of high-speed rail construction in China is about two-thirds of that in other countries. The world bank analyzed that in addition to the low labor cost, high-level planning and scale effect are also important reasons why China's high-speed rail is so cheap

in this regard, a CNR insider told the interface that in terms of technology and experience, China's high-speed rail has been internationally recognized. First of all, China has the longest mileage of high-speed rail. Second, China has rich experience in dealing with various situations due to its poor weather conditions, from the high cold in the north to the high temperature in the south, and its very complex geographical environment

on October 15, CSR and other eight companies jointly participated in the Mexican high-speed rail bidding, becoming the only bidder for the project, with an investment of about US $4.3 billion. By the end of 2013, China had established high-speed rail partnerships with more than 50 countries and regions around the world, with a total contract value of $26billion. CNR and CSR take the lead in China's high-speed rail exports

however, the above industry insiders pointed out that although all kinds of bids look dazzling, China is still a long way from the true export of high-speed rail. "If Mexico's high-speed rail project can be won as desired, it can be regarded as a zero breakthrough."

the person said that although China has excellent technology and rich experience, it still faces many complex situations when it wants to export 354 km/h high-speed trains to the United States and more overseas markets

"high speed rail involves design, civil engineering, equipment and other links. It is a complex system engineering. Some technologies such as train signaling also involve sensitive issues such as national security. Therefore, the threshold for high-speed rail to truly enter an overseas market is very high."

the person also said that the market demand for high-speed rail is limited. There is a huge demand like China, and there are few countries that can build it. Most countries should consider whether there is such a large passenger flow demand and pass a long-term demonstration. Therefore, although Chinese enterprises frequently participate in the bidding of overseas projects, it is still a long way from the official export of high-speed rail

CNR has made great achievements in the global market in recent years. According to the data released by SCI Verkehr, CNR china ranked the "world champion" of global rail transit equipment for three consecutive years in 2011, 2012 and 2013. It is also the world's largest supplier of metro vehicles, accounting for 22.4% of the global market share of metro vehicles in the past five years

CNR said that as of this year, the export of rail vehicle equipment of CNR has reached more than 90 countries. In the first half of this year, the overseas market development reached the best level in history, and the cumulative export contract amount was 1.535 billion US dollars, about 9.5 billion yuan

and right here

Copyright © 2011 JIN SHI