GE builds JV diesel engine plant with Chinese partner

CSR Qishuyan Locomotive, a division of China South Locomotive & Rolling Stock (601766.SH), and General Electric (GE.NY) have signed an agreement to build a joint venture diesel engine plant, the Securities Times reported. Each will invest US$45 million in the joint venture, which will produce and market diesel engines, ship engines and accessories, and offer after-sales services. It will be capable of producing 6.5 million diesel engines a year when operational. GE’s FDL manufacturing business will also be migrated into the joint venture as soon as possible, making it a global manufacturing centre for FDL engines. The two sides have been working together in diesel engines since September 2007. China South Locomotive & Rolling Stock is primarily engaged in the research, development, manufacture, sale, maintenance and leasing of railway locomotives, passenger coaches, freight wagons, multiple units, rapid transit vehicles and related components.