Last evening, GE Transportation announced a cooperative framework agreement with China's CSR Corporation Limited (CSR) to establish a U.S.-based joint venture to advance high-speed and other rail technologies in the U.S. The partnership represents an investment of approximately $50 million in the joint venture with the potential to sustain or create 250 U.S. jobs by 2012 for the first phase of the agreement.
The collaboration establishes the joint venture as the first U.S. manufacturer ready to supply high-speed rail (HSR) passenger trains for the two proposed U.S. high-speed rail corridors in Florida and California. The agreement also advances passenger rail transport through the manufacturing of medium-speed passenger trains and transit rail vehicles for urban areas in the U.S.
"We are committed to advancing the global high-speed rail technology market and this agreement provides a significant opportunity for infrastructure and business growth," said GE Vice Chairman John Rice. "It is in line with GE's company-to-country initiatives and will help support investment and high-tech job growth in America.
GE and CSR will be maximizing U.S. content in high-speed passenger trains to meet Buy America standards. In addition, all final production will be in the U.S., sustaining approximately 3,500 long-term high-tech manufacturing U.S. jobs in support of the joint venture.
GE Transportation and the MOR also signed a separate MOU to broaden their joint rail technology cooperation to serve China and North America and develop joint business opportunities for the U.S. rail market. This includes plans to develop additional diesel locomotive technology and deploy fuel saving rail software solutions like GE's Trip Optimizer to the Chinese market. The MOR will also promote GE's ITCS signaling technology in the Western part of China.
For more information please read the press release.