China's plan to merge its two railway vehicle manufacturers CNR Corp and CSR Corp into one conglomerate will create an industrial giant which will provide a significant boost to the country's export sector.The planned marriage is expected to create the world's biggest train manufacturer by sales, one which is capable of supplying bullet trains, light rail vehicles and subway cars to markets around the world.
These two train makers will end the harmful price war between the two companies in overseas markets and give the merged entity a clear edge over other global peers.The government has ordered the merger of CNR and CSR into one company to fuel robust growth, according to a Bloomberg report on Tuesday.
This action aims to avoid "in-fighting" between the two in their exploration of the global market, said Wang Mengshu, a railway expert at the Chinese Academy of Engineering.
Wang Mengshu, an academician with China Academy of Engineering, said the possible regrouping could help ramp up competitiveness of China's domestic train-making companies around the globe and allow them to better concentrate on technological innovation. As the industry evolves, domestic companies should join hands in boosting international development, rather than focusing on mutual competition.
