CSR Corporation Limited

CSR Corporation Limited was a Chinese rail-transport equipment manufacturer and one of the two principal state-backed companies that dominated China's locomotive and rolling-stock industry before the creation of CRRC. The company was established in 2007 as a listed vehicle for selected operating assets of the state-owned CSR Group. Although the broader CSR industrial organization had earlier roots, the listed corporation's formation and capital-markets history date to the 2007 restructuring. Its business covered the design, manufacture, refurbishment, maintenance, leasing, and technical support of railway equipment. CSR's product portfolio included electric and diesel locomotives, passenger coaches, freight wagons, electric multiple units, diesel multiple units, high-speed trainsets, subway cars, light-rail vehicles, traction systems, railway control equipment, motors, transformers, brakes, axles, and other railway components. Manufacturing and engineering capabilities were distributed across a network of specialized subsidiaries and research institutes. Zhuzhou was associated particularly with electric locomotives, propulsion, and railway electrical systems; Ziyang, Qishuyan, Luoyang, Xiangfan, and Chengdu supported locomotive production, repair, and component work; and other facilities produced passenger cars, freight wagons, multiple units, and urban transit vehicles. The company became publicly traded in 2008. Its A shares began trading in Shanghai in August 2008, while its H shares began trading in Hong Kong on 21 August 2008. The combined offerings raised approximately US$1.57 billion, with about 40 percent of the company offered across the two exchanges. Public listing gave CSR access to capital for expansion while leaving the group closely connected to China's state-owned railway-industrial system. CSR was active in China's high-speed rail build-out and urban-transit expansion. It developed and manufactured conventional electric and diesel locomotives, Harmony-series electric locomotives, multiple-unit trains, and subway vehicles for systems including Beijing and Shanghai. In December 2011, it announced a test of a train capable of reaching 500 km/h. The test represented a technology demonstrator rather than a routine commercial operating speed, but it illustrated the company's role in China's high-speed rail research and industrial development. Internationally, CSR pursued exports, joint ventures, acquisitions, and localized production. It supplied diesel multiple units to Sri Lanka, won rolling-stock and metro opportunities in Kazakhstan and Turkey, supplied or contracted for railway equipment in South Africa, and participated in the delivery of multiple-unit cars for metropolitan Buenos Aires services. In 2014, it acquired Argentine rolling-stock manufacturer Emprendimientos Ferroviarios, extending its manufacturing and service presence in Latin America. Its joint ventures included Bombardier Sifang Transportation in Qingdao and Qingdao Sifang Kawasaki Rolling Stock Technology, linking CSR with major international railway companies. At the end of 2014, CSR and its domestic rival China CNR announced a merger based on a one-for-one share exchange. The transaction combined the two largest Chinese rolling-stock groups and was intended to create a stronger, more globally competitive supplier. The merger was completed on 1 June 2015, forming China Railway Rolling Stock Corporation, commonly known as CRRC. CSR Corporation Limited therefore ceased to operate as an independent listed brand, although many of its factories, subsidiaries, products, and technical programs continued within CRRC and its affiliated companies.

CSR Corporation Limited emerged from the restructuring of China's state-owned locomotive and rolling-stock sector. In 2007, China South Locomotive & Rolling Stock Corporation Limited was established as a special-purpose listed vehicle intended to place the principal commercial assets of CSR Group into a public company. Some auxiliary operations remained outside the listed entity. The structure reflected China's effort to modernize state-owned industrial groups while retaining strategic control over railway manufacturing. The company entered international capital markets in August 2008. Its A shares began trading on the Shanghai Stock Exchange on 18 August, followed by the Hong Kong listing of its H shares on 21 August. The offerings raised approximately US$1.57 billion and represented roughly 40 percent of the company. CSR used its listed platform to support manufacturing capacity, research, international business, and the development of a broad portfolio of locomotives, carriages, multiple units, urban rail vehicles, and railway systems. CSR's industrial network included locomotive and rolling-stock factories in cities such as Zhuzhou, Ziyang, Qishuyan, Luoyang, Xiangfan, Chengdu, Nanjing, Meishan, Shijiazhuang, Wuhan, Wuchang, Tongling, and Guiyang. Its research organizations worked on electric propulsion, traction control, railway brakes, transmissions, suspension, noise reduction, composite materials, insulation, and manufacturing technology. Subsidiaries also provided refurbishment, leasing, maintenance, technical support, and export services. Important cooperation arrangements included Bombardier Sifang Transportation and Qingdao Sifang Kawasaki Rolling Stock Technology. The company participated in China's rapid expansion of high-speed and urban rail. Its products included SS-series electric locomotives, HXD1 Harmony locomotives, DF-series diesel locomotives, multiple-unit trains, subway cars, and high-speed test platforms such as China Star and Central China Star. A December 2011 test announcement concerning a train capable of 500 km/h demonstrated the emphasis placed on high-speed engineering, although the reported speed was associated with testing rather than ordinary commercial service. CSR also pursued international contracts and acquisitions. It supplied diesel multiple units for Sri Lankan commuter and longer-distance services, secured railway and metro work in Kazakhstan and Turkey, won a South African electric-locomotive tender, and participated in rolling-stock deliveries for Buenos Aires metropolitan lines. The 2014 acquisition of Emprendimientos Ferroviarios in Argentina gave it a direct industrial foothold in an overseas market. CSR and China CNR, its principal domestic rival, announced their intention to merge at the end of 2014. The transaction used a one-for-one share exchange and was designed to combine overlapping capabilities, improve scale, and strengthen the Chinese railway-equipment sector internationally. The merger was completed on 1 June 2015, creating CRRC. CSR Corporation Limited consequently became a defunct standalone company, while its operating assets and technical heritage continued within the CRRC group.

1. 2015CSR becomes part of CRRC

   The merger with China CNR was formally completed on 1 June, creating CRRC and ending CSR's independent corporate existence.

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2. 2014Argentine rolling-stock acquisition

   CSR acquired Emprendimientos Ferroviarios in Argentina as part of its international expansion.

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3. 2014Merger agreement with China CNR

   CSR and China CNR announced a one-for-one share-swap merger plan.

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4. 2011500 km/h high-speed test is announced

   CSR announced that it had successfully tested a train capable of reaching 500 km/h.

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5. 2008Dual-market listings begin

   CSR's Shanghai A shares began trading on 18 August and its Hong Kong H shares on 21 August. The offerings raised approximately US$1.57 billion.

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6. 2007Listed CSR operating company is formed

   China South Locomotive & Rolling Stock Corporation Limited was created as a public-company vehicle for major operating assets of CSR Group.

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State-backed Chinese rail-transport equipment manufacturer serving domestic railway modernization, high-speed rail, urban transit, and international rolling-stock markets.

• Electric locomotivesLocomotives

  CSR manufactured a broad range of electric locomotives for passenger and freight service, including SS-series locomotives, KZ4A high-speed locomotives, the DJ2 Olympic Star, and the HXD1 Harmony platform. Zhuzhou served as a major center for electric locomotive engineering and production, including traction motors, transformers, and related control equipment.

• Diesel locomotivesLocomotives

  The company produced and refurbished diesel and diesel-hydraulic locomotives for passenger, freight, shunting, and industrial applications. Its portfolio included DF4, DF5, DF8, DF11, and DF12 families, together with DFH and GK/GKD shunting variants in multiple track gauges.

• Multiple-unit trainsPassenger rail vehicles

  CSR designed and built electric multiple units, diesel multiple units, and high-speed trainsets for China's intercity, regional, and long-distance passenger networks. Its high-speed research portfolio included China Star and Central China Star test platforms, while production programs supported China's expanding high-speed railway system.

• Passenger coaches and freight wagonsRailway rolling stock

  CSR factories produced passenger coaches, freight wagons, refrigerated wagons, axles, castings, braking systems, and associated structures. The company also maintained and refurbished existing carriages and freight equipment through specialized subsidiaries.

• Metro and urban rail vehiclesUrban rail equipment

  CSR manufactured subway and rapid-transit vehicles for Chinese networks, including vehicles associated with Beijing and Shanghai metro systems. Its urban-rail capabilities also covered light-rail vehicles, traction equipment, auxiliary power, and urban rail control systems.

• 2014Acquire Emprendimientos FerroviariosM&A

  CSR was expanding beyond China through overseas manufacturing, service, and rolling-stock opportunities.

  What changed. CSR acquired the Argentine rolling-stock manufacturer Emprendimientos Ferroviarios.

  Aftermath. The transaction strengthened CSR's industrial presence in Argentina and supported its Latin American expansion.

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• 2014Agree to merge with China CNRM&A

  CSR and China CNR were the leading domestic competitors in China's rail-equipment sector, with overlapping manufacturing and engineering capabilities.

  What changed. The companies announced a one-for-one share-swap merger to create a combined group later named CRRC.

  Aftermath. The merger was completed on 1 June 2015, ending CSR's independent corporate identity and consolidating the two groups into CRRC.

  Announced approximate value of resulting company. Approximately US$26 billion (At the end of 2014 merger announcement)

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• 2007Create a listed vehicle for CSR Group assetsStrategy

  China's state-owned railway-equipment sector was being reorganized into larger, more commercially oriented groups while retaining state ownership and strategic coordination.

  What changed. CSR established a listed corporation containing major operating assets, while some auxiliary assets remained in the unlisted CSR Group.

  Aftermath. The structure enabled CSR to raise capital through Shanghai and Hong Kong listings and operate as a major publicly traded rail-equipment manufacturer.

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• 2016South African train-contract allegationsControversy

  CSR, together with members of the Gupta family, was accused of attempting to improperly influence the award of a 2012 contract valued at R51 billion for the delivery of 600 trains to South Africa's Passenger Rail Agency. Reports also discussed allegations involving Busisiwe Mkhwebane in connection with her earlier diplomatic role. The allegations concerned procurement influence and were reported after CSR had merged into CRRC.

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• 2015CSR and China CNR complete merger to form CRRC

  The two companies formally completed their merger on 1 June 2015, creating China Railway Rolling Stock Corporation, or CRRC.

  M&ALeadership change
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• 2014CSR acquires Argentine rolling-stock manufacturer

  CSR acquired Emprendimientos Ferroviarios, expanding its manufacturing and commercial presence in Argentina.

  M&A
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• 2014CSR and China CNR announce merger plan

  CSR and China CNR announced a proposed one-for-one share-swap merger that would create a combined national rail-equipment group.

  M&A
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• 2011CSR announces successful 500 km/h train test

  The company reported a successful test of a train capable of reaching 500 km/h, highlighting its high-speed rail research and engineering capabilities.

  Product generationOther
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• 2008CSR completes public share offerings in Shanghai and Hong Kong

  CSR's A shares and H shares began trading in August 2008, completing its transition into a major dual-market listed rail-equipment manufacturer.

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1. CSR Corporation Limited