GERMANY: On August 26 Vossloh AG announced its intention to sell its Locomotives business unit to Chinese state-owned rolling stock group CRRC.
Vossloh Locomotives is based in Kiel, where a new production facility was completed in March 2018. The business specialises in producing small and medium sized diesel and dual-mode locos for light main line and shunting duties.
In a statement, Vossloh said that it had ‘signed a contract for the sale of its Locomotives business unit, currently reported as discontinued operations, to CRRC Zhuzhou Locomotive Co Ltd. The agreed purchase price is still subject to adjustment at the closing date, depending on the development of various balance sheet positions, and is projected to amount to a low single-digit million figure.’
Completion of the sale of the Kiel locomotives business would conclude Vossloh’s withdrawal from the supply of above-rail equipment; the company has gone through a restructuring process which began in 2015 under which it intends to focus solely on supplying equipment for railway infrastructure applications. Since 2015, it has sold its Rail Vehicles and Electrical Systems business units to Stadler and Knorr-Bremse respectively.
Sale of the Locomotives business to CRRC would mark the Chinese conglomerate’s entry into the European rolling stock supply sector. Although CRRC is the world’s largest rail vehicle producer by volume, it has only gained a modest foothold in the European market to date with small orders for vehicles produced in China.
‘We are excited to announce the sale of the business unit after a long and challenging sales process’, said Vossloh Chief Executive Andreas Busemann. ‘We have found the optimal strategic partner for Vossloh Locomotives in CRRC ZELC, which has the necessary resources to successfully further develop the Locomotives business in the long term.’