Caixin
Jun 02, 2015 05:29 PM

CSR, CNR Merger Said to Become Official with Gov't Registration

(Beijing) – A new company that has been formed by the merger of the country's two largest railroad equipment manufacturers was registered with the government on June 1, a statement from one of the firms involved said.

China CSR Corp. Ltd. (CSR) said it changed its registration information at the Beijing Administration for Industry and Commerce. Its new name is China Railway Rolling Stock Corp. Ltd. (CRRC).

CSR and CNR Corp. Ltd. said on December 30 that the latter will be incorporated into CSR in the merger, and that CSR would issue shares to replace the CNR stock held by investors on both the Shanghai and Hong Kong bourses. CNR was to withdraw all of its shares from those stock markets.

The June 1 statement said CSR has finished replacing the shares. The new company's leadership consists of five executives from CSR and five from CNR.

CNR's chairman, Cui Dianguo is the new company's chairman. CSR's chairman, Zheng Changhong, and its president, Liu Hualong, are vice chairmen.

CNR's president, Xi Guohua, becomes the new company's president. The six vice presidents are Zhao Guangxing (CNR), Zhan Yanjing (CSR), Sun Yongcai (CNR), Wang Jun (CSR), Lou Qiliang (CSR) and Yu Weiping (CNR).

Cui, 61, and Zheng, 60, were deputy general managers of the former China National Railway Locomotive & Rolling Stock Industry Corp. from October 1999 to September 2000 before that company was split into CSR and CNR in 2000.

Cui worked at CNR after the separation, and Zheng worked for CSR.

The personnel arrangement would help the merger go smoothly, a person with knowledge of the matter said. The headquarters of the new company will be in the capital's Haidian District, the source said.

The merger is an experiment by the government aimed at reforming state-backed firms, an official from the State-owned Assets Supervision and Administration Commission said.

The official also said the new company will help accomplish the government's 10-year plan for upgrading manufacturing capacity and help SOEs' expand abroad.

Since 2009, China has built more than 10,000 kilometers of high-speed railroad lines, the most in the world, and now the government wants the rail equipment companies to sell bullet trains overseas. Chinese companies have not won any foreign contracts to export a bullet train so far.

The central government said last year it wanted CNR and CSR to merge to create a more competitive player abroad.

(Rewritten by Guo Kai)

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code
GALLERY