CSR Group

CSR Group, formally known as China South Locomotive and Rolling Stock Industry (Group) Corporation, was a Chinese state-owned industrial group focused on railway locomotives, rolling stock, railway electrical equipment, refurbishment and related manufacturing activities. It was established in 2002 after the separation of China’s railway-equipment industry from the Ministry of Railways. The reorganization created two large, geographically oriented state-owned groups: CSR in the south and China North Locomotive and Rolling Stock Industry (Group) Corporation, generally known as CNR, in the north. The group’s institutional predecessor was created in 1986, when China National Railway Locomotive & Rolling Stock Industry Corporation was formed with 35 production sites and four research centers. That predecessor consolidated a substantial portion of China’s locomotive and rolling-stock manufacturing base. In 2002, the industry was separated from the Ministry of Railways and reorganized into CSR Group. The restructuring was intended to establish more commercially oriented corporate groups while retaining state control over strategic railway manufacturing capabilities. CSR’s activities covered the design and production of locomotives, electric locomotives, passenger and freight rolling stock, electric multiple units, railway components, and repair and refurbishment services. Its manufacturing and research network included major industrial facilities such as Zhuzhou Electric Locomotive Works. In 2002, the Zhuzhou operation produced the China Star high-speed electric multiple unit, which reached a reported test speed of 270 km/h. The project reflected China’s early efforts to develop domestic high-speed rail technology and production capacity. During the 2004–2007 period, CSR reportedly held approximately half of China’s internal locomotive market by volume, about 80 percent of the multiple-unit market, and roughly half of the locomotive and wagon refurbishment market. Overseas sales represented approximately 7–8 percent of revenue during that period, indicating that the group remained primarily China-focused while beginning to develop an international business. Its activities were supported by a broad network of manufacturing sites, research organizations and subsidiaries. In 2007, the group’s principal operating assets were separated and used to establish CSR Corporation Limited, a publicly listed operating company. CSR Group consequently became primarily a holding entity, retaining certain auxiliary assets and an interest in South Huiton. CSR Corporation Limited became the principal listed vehicle for the group’s railway-equipment manufacturing operations. In April 2010, the group’s Chinese corporate name was changed as part of a further institutional and naming adjustment. CSR Group ceased to exist as an independent corporate group in 2015, when it was merged with CNR Group. The transaction created China Railway Rolling Stock Corporation, commonly known as CRRC, a large state-owned rail-transit equipment group formed by combining the two principal Chinese railway-equipment manufacturers. CSR Group is therefore best understood as a historical predecessor and holding-company structure rather than a currently operating consumer-facing brand.

CSR Group emerged from the restructuring of China’s state-controlled railway manufacturing system. In 1986, China National Railway Locomotive & Rolling Stock Industry Corporation was established with 35 production sites and four research centers. The organization consolidated a large portion of the country’s locomotive and rolling-stock production and research capabilities. A major institutional change occurred in 2002, when the railway-equipment industry was separated from the Ministry of Railways. The southern-oriented China South Locomotive and Rolling Stock Industry (Group) Corporation was formed as CSR Group. Its counterpart, China North Locomotive and Rolling Stock Industry (Group) Corporation, was established during the same reorganization and became CSR’s principal domestic competitor. CSR’s industrial scope included locomotives, passenger and freight vehicles, electric multiple units, railway systems and components, as well as maintenance and refurbishment. The group’s facilities participated in China’s early high-speed rail development. In 2002, Zhuzhou Electric Locomotive Works produced the China Star high-speed electric multiple unit, which reached a reported speed of 270 km/h. This program represented an effort to develop domestic high-speed train technology before the later expansion of China’s high-speed rail network. Between 2004 and 2007, CSR held a substantial share of China’s railway-equipment market. Reported market shares were approximately 50 percent for locomotives, 80 percent for multiple units, and 50 percent for locomotive and wagon refurbishment, measured largely by volume. International sales accounted for approximately 7–8 percent of revenue in the same period, suggesting that domestic railway demand remained the group’s core business while overseas activity was still developing. The group’s corporate structure changed substantially in 2007. Most of its major operating assets were spun off into CSR Corporation Limited, a separate listed company. CSR Group retained a holding-company role, including certain auxiliary assets and a stake in South Huiton. CSR Corporation Limited became the principal corporate vehicle for the group’s manufacturing activities. In April 2010, CSR Group’s Chinese name was revised. The change took place within a broader period of restructuring and institutional development in China’s railway-equipment sector. The separation between the holding group and its listed operating company continued until the sector was consolidated at national level. In 2015, CSR Group and CNR Group were merged to create CRRC Group. The merger united China’s two major state-owned railway-equipment groups and formed a larger organization serving domestic and international rail markets. CSR Group consequently became a historical predecessor of CRRC rather than an active independent company.

• 2015

  Merger into CRRC Group

  [1]CSR Groupen.wikipedia.org

  CSR Group merged with CNR Group, forming CRRC Group and ending CSR Group’s independent existence.

• 2010

  Chinese corporate name revised

  [1]CSR Groupen.wikipedia.org

  CSR Group’s Chinese corporate name was changed in April 2010.

• 2007

  Operating assets transferred to CSR Corporation Limited

  [1]CSR Groupen.wikipedia.org

  Most major assets were spun off into CSR Corporation Limited, leaving CSR Group primarily as a holding company.

• 2002

  CSR Group established

  [1]CSR Groupen.wikipedia.org

  The railway-equipment industry was separated from the Ministry of Railways and reorganized into CSR Group. CNR Group was formed as its northern counterpart.

• 2002

  China Star high-speed EMU produced

  [1]CSR Groupen.wikipedia.org

  Zhuzhou Electric Locomotive Works produced the China Star high-speed electric multiple unit, which reached a reported speed of 270 km/h.

• 1986

  Formation of the national railway-equipment predecessor

  [1]CSR Groupen.wikipedia.org

  China National Railway Locomotive & Rolling Stock Industry Corporation was formed with 35 production sites and four research centers.

A state-owned Chinese railway-equipment group serving domestic rail transport needs and developing export-oriented manufacturing capabilities. Its strategic role was industrial and infrastructure-focused rather than consumer-facing.

• High-speed electric multiple unit · 2002

  China Star

  China Star was a high-speed electric multiple unit developed at Zhuzhou Electric Locomotive Works. Produced in 2002, it reportedly reached 270 km/h and represented CSR’s early attempt to develop domestic high-speed train technology. The train formed part of China’s broader effort to build indigenous capabilities in high-speed rail design and manufacturing.

• Railway rolling stock

  Locomotives

  Locomotives were one of CSR Group’s principal product categories. The group’s industrial network manufactured and supported locomotive equipment for China’s railway system, contributing to a reported share of approximately half of the domestic locomotive market during 2004–2007.

• Passenger rolling stock

  Multiple units

  CSR produced electric multiple units for passenger rail service, including high-speed development projects. During 2004–2007, the group reportedly held approximately 80 percent of China’s multiple-unit market by volume.

• Railway maintenance and refurbishment

  Railway refurbishment services

  The group provided refurbishment and related services for locomotives and wagons. These activities represented a significant part of its domestic railway role, with CSR reportedly accounting for approximately half of China’s locomotive and wagon refurbishment market during 2004–2007.

• 2015

  Merger with CNR GroupM&A

  Background

  China’s two major state-owned railway-equipment groups, CSR and CNR, were consolidated at national level.

  Action taken

  CSR Group was merged with CNR Group to form CRRC Group.

  Aftermath

  CSR Group ceased to operate as an independent corporate group and became part of the organizational history of CRRC.

  Source

• 2007

  Spin-off of major operating assetsStrategy

  Background

  CSR Group was reorganized so that most of its principal operating assets could be placed in a separate listed company.

  Action taken

  The assets were transferred into CSR Corporation Limited, while CSR Group retained a holding-company role and selected non-core interests.

  Aftermath

  CSR Corporation Limited became the main operating and listed vehicle associated with the CSR railway-manufacturing business.

  Source

1. 1CSR Groupen.wikipedia.org