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East meets West as TÜV Nord and CRRC forge strategic alliance.

Posted by Emily O'Dowd on Oct 3, 2016

TUV Nord and CRRC sign agreement at InnoTrans (SmartRail World)As regularly covered by SmartRail World, Chinese high-speed rail is continuously growing and expanding. And much of this rapid development has been driven by the massive China Railway Rolling Stock Corporation (CRRC), the world’s largest rolling stock manufacturer who are now turning their attention to Europe. Already exporting their products to 102 countries, their expansion plans took a further step forward on 23rd September when they signed an agreement with TÜV NORD (@tuvnord) at InnoTrans in Berlin. So what has brought these two companies together? 

China has made ambitious achievements in railway development that they hope to mirror in Europe. The numbers behind China’s rail growth are staggering; 1.1 billion passengers that were transported on high-speed rail links in 2015 – the largest ridership in the world. Chinese rail passengers are now able to travel at high-speed over 12,400 miles of track with targets to double this figure by 2030. 

Founded in 1869 and headquartered in Hanover, Germany, TÜV NORD is a German technical service provider for rolling stock which operates in more than 70 countries. As specialists in ensuring the safety of rail products and services for employees and passengers, their alliance with CRRC will aim to sharpen the Chinese firm’s adherence to international safety standards.

This alliance will enable TÜV NORD to assist CRRC with the technical standards and procedures in Europe, but they will also further inform the Chinese rolling manufacturer about international safety standards. Ralf Jung, the managing director for TÜV NORD stated: “With our strategic partnership, TÜV NORD and CRRC will jointly ensure high quality and safety standards for the international railway markets.”

It is planned that the two companies will collaborate over the assessment of components, the testing of structural elements and in acceptance procedures. The rail company’s first source of business is believed to be from freight wagons. With TÜV Nord’s primary business focus in Europe, it no coincidence that the Chinese company is keen to benefit from the synergies with such an agreement.

Rail and Metro Innovation Guide 2017This deal is important for CRRC because it is the first time that the company have made such an alliance with a European company. It is hoped that in addition to improving, it will also develop further high speed rail projects in Europe for CRRC. The Beijing-based rail giant, according to International Rail Journal, they have plans to secure 20% of business from international projects in a year’s time.

“We are a global supplier of railway products. We want to deliver as many products as possible, as well as our technology in the European market… This MoU is not the first signed with German companies. In June, Deutsche Bahn and China Railway Rolling Stock Corporation signed two MoUs on the stability and optimisation of the maintenance system for high-speed trains”, declared Cui Dianguo, Chairman of CRRC corporation.

Also in the news this week, CRRC have signed a new agreement with Bombardier to provide a better service for customers and improve the rail transportation equipment to begin both companies’ ambitious growth predictions. They are looking to support each other with market development and to share manufacturing resources. This demonstrates CRRC’s international scope and constant desire to expand. SmartRail World will follow this story as it develops to bring you the latest information on this agreement and how it will effect Europe and China’s high speed rail markets.

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Topics: Rolling Stock

Emily O'Dowd

Written by Emily O'Dowd

On graduating with a degree in English Literature at Royal Holloway University of London, Emily joined the editorial team. When she isn't writing articles for the website or interviewing experts in the industry she enjoys reading, running and sailing.

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