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Business / Companies

Alstom to extend rail presence

By ZHONG NAN (chinadaily.com.cn) Updated: 2014-01-10 15:23

Alstom SA, France's transport infrastructure and power generation conglomerate, hopes to further expand its presence in China's rail transportation business this year, as the country's demand continues to be on the upswing, said the company's newly appointed head.

Gao Yan, president of Alstom China, said many of the opportunities have risen from China's fast urbanization pace, and both rail and underground transportation are key parts that are improving public transport services while also cutting down on pollution and congestion caused by heavy car use.

Alstom acquired two contracts worth a combined total of 75 million euros ($102 million) to supply new traction equipment for more than 550 cars at Chengdu and Xi'an metros in 2015.

Both cities are expanding their existing subway networks. Chengdu, the capital of Southwestern China's Sichuan province, will count 10 lines (350 kilometers) by 2020, and the historic city of Xi'an, in Northwest China's Shaanxi province, will have six metro lines by 2018.

"Building and enlarging the subway network is a useful solution to improve China's ongoing urbanization process," Gao said.

Chinese government expects to have 60 percent of the country's population living in cities by 2020. Europe and the US have already exceeded 78 percent.

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