Chicago handed a US$1.3 billion contract for rail cars for the city’s “L” rapid transit system to a unit of China’s CRRC Corp., Bloomberg reported.
CSR Sifang America JV submitted the lowest bid for the 846 rail cars, the Chicago Transport Authority said in a statement on its website Thursday.
Prototypes for an initial order for 400 train cars are due in 2019 and expected to go into a service a year later after tests.
As part of its winning bid, CSR Sifang will invest US$40 million in building a rail assembly facility in Chicago.
The deal is the second in the United States for the Chinese train builder in 18 months.
China CNR Corp. — which merged with CSR Corp. last year to form CRRC Corp. – won a contract worth US$567 million in October 2014 to supply trains for Boston’s subway system.
Premier Li Keqiang is leading an overseas push by Chinese train equipment makers as part of a broader strategy to turn China into an advanced industrialized nation.
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