China CRRC Co., Ltd., Massachusetts, USA (also known as Massachusetts) Springfield production base, held a groundbreaking ceremony on September 3, which is the first time that Chinese rail transit equipment manufacturers have invested in establishing factories in developed countries. The subway locomotive it produces will also operate for the first time in the US market with stringent safety technology standards.
After fierce bidding, CRRC won the procurement contract for the 284 red orange line vehicles of the Massachusetts Metropolitan Government at the end of 2014. These routes pass through the Boston Financial District, Harvard University and other places, with a daily traffic of about 1.3 million passengers. The active trains on the Red Orange Line have been in operation for decades and most have become obsolete.
Since the project is a government tender, all the tender funds come from the state government instead of the US federal government. In addition, the Purchase American Goods Act stipulates that 60% of the parts of government procurement must be produced in the United States. Therefore, the medium-sized car must be built in Massachusetts. Carry out production assembly of the locomotive. The factory is expected to invest 60 million US dollars to provide 150 jobs for the local area. The factory will be put into production in 2018 and all products will be delivered in 2023.
The city of Springfield, located in the southwest of Boston, is more than 140 kilometers southwest with a population of about 150,000. Local pillar industries include trade transportation, education and medical care, and tourism and catering. In the 1970s, it was the manufacturing center of New England, but the manufacturing industry began to move out. It is also the headquarters of the American Ice Hockey League. The CRRC production base covers an area of ​​about 40 acres (about 160,000 square meters), including an old factory originally owned by Westinghouse Electric.
Yu Weiping, vice president of CRRC, told Xinhua News Agency that CRRC's investment in the United States means that China's high-end equipment has achieved output from product output to capital output and technology in the most developed countries in the world, from product cooperation to products, technology and services. Manage the tremendous transformation of all-round cooperation. This high level of capacity cooperation is conducive to the transformation and upgrading of China's investment in the United States.
He said that the United States is the birthplace of the subway and has strict standards for the technical and operator qualifications of rail transit products. The bidding process in the United States is very strict. CRRC competes with many well-known rail transit equipment manufacturers in the world and finally wins, fully demonstrating the US recognition of the comprehensive advantages of CRRC technology and price.
Massachusetts Governor Charlie Baker told Xinhua News Agency that the construction of a medium-sized car may promote the local return to manufacturing, which is a major event for Massachusetts, which may become a "milestone" in the history of Massachusetts. The Mayor of Springfield, Domenico Sano, said at the groundbreaking ceremony that any economic development project is behind employment. The CRRC plant will create 150 high-paying jobs for us, which is exciting.
At the groundbreaking ceremony, many neighboring companies and schools came to look for cooperation opportunities. Teachers from the Bays College of Massachusetts came to inquire about employment for graduates. The local bus company hopes to get transportation services for the CRRC plant. Another electric service provider has 60% of employees who are women and ethnic minorities. I hope to become a partner of CRRC. At the request of the US, CRRC should consider hiring women and ethnic minority workers to a certain proportion when selecting US partners.
Despite this, it is difficult to invest and build factories in the United States. Yu Weiping said that although a lot of careful preparations have been made before, CRRC's international management is not high and its experience is limited. It has encountered various challenges in the process of building factories. After hard work, CRRC finally overcome these difficulties and explored the path for the company's international operation and accumulated experience.
The Boston order is only the first order for Chinese railway equipment to enter the United States. CRRC hopes to use this project to launch a high-speed rail market in the United States. The California high-speed rail has already started, and the high-speed rail construction plan for the Dallas-Houston section in Texas is underway. High-speed rail tenders in the United States require 100% of the parts to be produced in the United States.
Yu Weiping said that China's high-speed rail product technology has already stood at the world's leading level. As long as the United States needs to build a high-speed rail, CRRC will try its best to obtain orders.
He said that the US railway market is vast, China's advanced technology, strong manufacturing services, and strong complementarity between China and the United States. There is almost no competition between Chinese and American railway equipment, and more is reflected in cooperation.
At present, CRRC has also established a welding R&D center with the University of Michigan, and has established the Sino-US Railway Technology Research Institute with the University of Illinois at Urbana-Champaign to jointly study and solve the frontier problems of railway transportation.

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