Premier Li hails merger of China's two major train makers

Premier Li Keqiang visited China's largest urban rail manufacturing plant during a visit to Changchun, Jilin province, ahead of the upcoming merger of the country's two leading train manufacturers, asking the combined jumbo train-maker to reach higher levels of excellence in the global market.

The upcoming merger of China's top two high-speed train manufacturers, the CNR and CSR Corp, will see the establishment of a "combined fleet" in the train manufacturing industry and it will give Chinese companies an advantage to compete for a bigger share in the global market, Li said during a visit to the CNR Changchun Railway Vehicles Co., the manufacturer of almost half of China's subway and urban rail equipment in Changchun, Jilin province.

"The merger of CNR and CSR will establish a jumbo company, which includes not only locomotive manufacturing but also supporting industries," Li said as he inspected the assembly lines of urban railways at the Changchun plant, asking the corporate leader to avoid cut-throat competition and coordinate in exploring the global market.

The CNR and CSR announced last month that their merger plan has passed overseas scrutiny, which means existing overseas projects will not be affected by the merger.

Xi Guohua, president of CNR, said workers at the company regard the Premier as a super salesperson for Chinese rail equipment and an ally of the company for his dedication to promoting Chinese rail equipment overseas.

After confirming a contract of 4.1 billion yuan ($645 million) with the Massachusetts Bay Transportation Authority to supply 284 subway cars to Boston, the company will deliver multiple electric units and subway trains for the Rio Olympics in Brazil.

China's top two rail equipment manufacturers have reported a net profit of 5.32 billion yuan and 5.49 billion yuan, respectively, in 2014, up 28 and 33 percent.

China has built more than 12,000 kilometers of track at home in less than a decade.