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12/15/2004



Rail News: Rail Industry Trends

Greenbrier to collaborate with Chinese freight-car builder



The Greenbrier Cos. recently entered into two separate long-term cooperation agreements with Chinese rail-car builder Zhuzhou Rolling Stock Works (ZRSW).

Greenbrier will purchase Chinese-manufactured parts and components for freight cars to be built in North America and Europe. Greenbrier currently has several other Chinese sourcing programs, which have helped reduce manufacturing costs, and maintain or improve product quality and reliability. The company might expand those relationships, as well.

The other agreement calls for Greenbrier and ZRSW to collaborate on design and commercial opportunities to support China's growing rail-car supply sector.

"Our two companies will closely examine our respective technologies and designs for best practices, under carefully crafted and protected manufacturing arrangements for the North American, Chinese and other global markets," said Greenbrier President and Chief Executive Officer William Furman in a prepared statement. "While it is not Greenbrier's current intention to enter the manufacturing business in China directly, we are very interested in design and commercial collaboration with ZRSW and its parent, China South Locomotive and Rolling Stock Industry Group, to support the significant goals of the Chinese Ministry of Railways."

Located in Zhuzhou, Hunan, ZRSW is China's second-largest freight-car builder, producing about 6,000 cars annually.

"Greenbrier's manufacturing facility is a leader in the field of technology and production capability in the same industry as ours in North America," said ZRSW President Cao Yang. "By learning from each other's strengths, together we will become more significant players in the global rail supply market."


Contact Progressive Railroading editorial staff.

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