GE enters joint venture with China company

General Electric Co. Tuesday said it has reached “a cooperative framework agreement with CSR Corp. Ltd. to establish a U.S.-based joint venture to advance high speed and other rail technology in the U.S.” GE said 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.

GE claims the GE Transportation-CSR joint venture is 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. But the venture also would pursue manufacturing opportunities for conventional passenger trains and rail transit vehicles within 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 follows a Memorandum of Understanding GE signed with China’s Ministry of Railways (MOR) in November 2009. The GE-CSR joint venture would strive to maximize U.S. content in any U.S. HSR effort to meet Buy America standards. GE said 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.

Zhao Xiaogang, chairman of CSR said, “CSR and GE will create a leading passenger transportation business in the U.S. by combining CSR’s extensive experience in developing and operating high speed, medium-speed EMUs [electric multiple-unit trains], and urban rail transit vehicles with GE’s manufacturing and supply chain management expertise in America, as well as in-depth knowledge of the U.S. rail market.”