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State rail company to build huge manufacturing base

China Northern Locomotive and Rolling Stock Industry Group (CNR), a state-owned rail equipment manufacturer, has signed an agreement with the municipal government of Xi'an City, in central China, to invest CNY 6 billion ($876 million) to build the country's largest wind power equipment research, development and manufacturing base. Xi Guohua of CNR says money will be used to research wind power drive systems, components and logistics businesses with the aim of making Chinese wind power technology competitive on a global scale. The first stage of the project, slated for completion in 2011, will involve investment of CNY 4 billion ($584 million) in six wind turbine manufacturing plant from which CNR targets combined annual revenue of CNY 10 billion ($1.5 billion). The showcase feature will be the Jingwei Industrial Park, housing factories to manufacture a broad array of wind power equipment. The second phase of CNR's plan, requiring CNY 2 billion ($292 million), will cover wind power system integration and other electricity related projects. Completion is planned for 2015.

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