Shanghai, October 27 (Gasgoo.com) China's Ministry of Railways has signed a contract to buy from a Chinese train-maker 140 bullet trains that will be built with the technology of Kawasaki Heavy Industries Ltd. of Japan, Kyodo News reported today, citing insiders.
In the 45 billion yuan ($6.6 billion) deal, China will buy the high-speed trains from Nanche Sifang Locomotive, which has a technology licensing agreement with Kawasaki Heavy, said sources familiar with the matter. The train can run at a top speed of 350 kilometers per hour.
The bullet trains will be manufactured using Kawasaki Heavy's technology for Hayate trains which run on the Tohoku Shinkansen Line in Japan. The new trains will run between Beijing and Shanghai and between Beijing and Guangzhou starting next year.
Japanese railway-related manufacturers which produce motors, brakes and other railway parts are also expected to benefit from this multi-billion-dollar contract, the sources said.
Meanwhile, China has also placed orders to a Chinese train maker affiliated with Germany's Siemens AG and a joint venture set up by Canada's aircraft and train maker Bombardier Inc. and a Chinese company.
China began high-speed train services on the line between Beijing and Tianjin last year and is building similar lines in other parts of the country.
Gasgoo: auto parts source
