Chinese state group China CNR Corporation Ltd. to invest US$125 million in Brazil

22 June 2011

Sao Paulo, Brazil, 22 June – Chinese state group china CNR Corporation Ltd. Plans to invest 200 million reals (US$125 million) to modernise a factory in order to start producing urban trains in Brazil, according to the Brazilian press.

The group reached an agreement with the T’Trans company – whose factory set up 12 years ago in the city of Três Rios, in the state of Rio de Janeiro, is currently operating at 30 percent of its capacity – to produce some of the urban trains ordered by the government of the state of Rio de Janeiro to renew the rolling stock of urban train operator Supervia, controlled by the Odebrecht group.

Três Rios, a city with an estimated population of 76,000 people, has a tradition of railways as it was home to the headquarters of Companhia Industrial Santa Matilde, one of the main railroad equipment manufacturers in the 1970s.

As well as having a local workforce that is used to the railroad sector, incentives have secured the investment by the Chinese group, which will be exempt from paying Tax on Circulation of Goods and Services (ICMS) on production of the trains ordered by the government of Rio de Janeiro and operated by Supervia.

The Brazilian press also reported that the municipal authorities of Três Rios had earmarked a plot of land measuring 12,000 square metres next to the T’Trans facilities, should the Chinese group plan to expand its operations, especial as it already has other orders from Brazil, such as from the Rio de Janeiro metro system.

Last week, the government of Rio de Janeiro state took delivery of an order of 34 trains to renew the urban fleet of the metropolitan region of the state capital, at the factory of China CNR Corporation Ltd. in Changchun, north of Beijing. (macauhub)

MACAUHUB FRENCH