Shanghai, July 18 (Gasgoo.com) A new Chinese locomotive-maker, China North Locomotive Co., Ltd., was founded yesterday in Beijing, reported Xinhua New Agency on Thursday. The company is set to launch IPO later this year.
The company is invested by China Northern Locomotive & Rolling Stock Industry (Group) Corp (CNR, or China Beiche Group), along with China ChengTong Holdings Group and China Huarong Asset Management Corp, with China North Loco holding 99.01% of the 5.8 billion shares. The new company will go public at the end of this year and will integrate all the locomotive business of China Beiche Group.
The current business lineup of China Beiche Group includes locomotives, motor train units (Harmony bullet trains), city rapid-transit train cars, trucks and related electromechanical products, boasting 80% domestic market share. Its sales revenue grew to 29.5 billion yuan ($4.32 billion) in 2007 from 11.36 billion yuan in 2000. Most of the rapid-transit trains running in Beijing and some Harmony bullet trains shooting between Chinese cities are the products of China Beiche Group.
Based on the achievements of China Beiche Group, the newly-founded China North Locomotive Co., Ltd. will explore larger market growth at home and abroad, and aims to achieve sales revenue of 70 billion yuan in 2011. The Chinese manufacturer of locomotives and vehicles aims to join the ranks of the world's top 500 companies.