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Chinese train maker signs South Africa contract

(Xinhua) Updated: 2012-09-11 09:36

BEIJING -- China's largest train manufacturer, CSR Corp Ltd, on Monday announced its subsidiary company has secured a contract worth $400 million to supply freight electric locomotives to South African logistics firm Transnet.

The contract won by CSR Zhuzhou Electric Locomotive Co Ltd set a precedent for Chinese train manufacturers in the continent of Africa, one of the world's fastest-growing rail markets.

The electric locomotive supplied by CSR can haul freight trains at a maximum speed of 100 km per hour.

According to the agreement, CSR's subsidiary will transfer technology concerning electric locomotive manufacturing to South Africa and more than 60 percent of the parts and components will be produced in South Africa.

The deal's first locomotive is expected to be delivered by the end of 2013.

As demand from developed countries stalls amid the current economic slowdown, CSR is increasingly targeting overseas market for business opportunities.

The value of existing overseas orders held by CSR stood at about $1.7 billion after it won contracts from Malaysia, Turkey and Singapore in the first half of this year.

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