Midas wins Suzhou rolling-stock deal
Singapore-based rolling stock manufacturer Midas yesterday said that its joint-venture company, Nanjing SR Puzhen Rail Transport, had won a contract to supply 115 railway cars for the Suzhou Metro Line 2 project.
Under the 526.9 million yuan (HK$647.8 million) contract, the units were expected to be delivered during next year and 2014 and would contribute to the firm's financial results for those two years, the company said. Midas holds 32.5 per cent of the Nanjing joint venture with CSR Corp, one of the mainland's leading train builders.
'Subway projects are being sped up in the Yangtze River delta region, including Suzhou, Wuxi, Nanjing and Shanghai,' Midas chief executive Patrick Chew said.
The company, listed in Hong Kong and Singapore, said that although its business was focused principally on China, it was now looking further afield.
Chew said turnover from overseas markets accounted for about 5 per cent of the company's overall business and that he would like to increase it to between 15 per cent and 20 per cent in the next three to four years.
The company reported a net income fall for last year of 22 per cent to 187.4 million yuan from the previous year, dragged down by a slowdown in mainland railway construction after the Wenzhou high-speed train crash and the dismissal of former railway minister Liu Zhijun.
Midas plans to spend up to 500 million yuan this year, mainly to build a factory to produce aluminium alloy extrusion products for the passenger rail transport sector.
Chew said the firm would like to diversify its products and not rely only on the railway industry.
Midas has teamed up with Jilin Kaitong, a private firm based in northeastern China, to produce aluminium alloy plates, sheets and strips that can be used in aircraft and cars.
Jilin Midas Light Alloy, the joint venture, is expected to produce 200,000 tonnes of aluminium alloy materials when it starts production in three years.