GE Agreement with CSR to Invest in Rail Technologies

BEIJING — GE announced a cooperative framework agreement with CSR Corporation Limited (CSR) to establish a U.S.-based joint venture to advance high-speed and other rail technology 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.

This collaboration establishes the GE Transportation – CSR joint venture as the first U.S. manufacturer ready to supply high-speed rail (HSR) passenger trains for the two proposed true U.S. HSR 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.”

The agreement is another critical step to support and advance passenger rail development in the U.S., following the memorandum of understanding (MOU) GE signed with China’s Ministry of Railways (MOR) in November 2009.

GE and CSR are committed to 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 is the world leader in diesel-electric locomotive technology and this agreement is a step towards expanding offerings to manufacture high-speed passenger trains or EMUs (Electric Multiple Units).