Ansaldo STS – US&S Pens $30M China CBTC Contracts

PITTSBURGH (Dec 18, 2008) – Ansaldo STS – Union Switch & Signal (US&S), a supplier of railway signaling equipment, systems and services, through its subsidiary, Union Switch & Signal International (USSI), signed subcontracts for two new Communications Based Train Control (CBTC) projects as part of its strategic Alliance Agreement with Zhejiang Zheda Insigma Group Company Ltd. (“Insigma”), based in Hangzhou, China. The contracts have a combined value of approximately US$30 million for Ansaldo STS – US&S. 

Insigma has long been known for its leadership in IT technology. Within this contract, they will be responsible for the major portion of the CBTC hardware acquisition and installation, as well as the DCS (Data Communication System) between the wayside and carborne equipment. 

“The combined expertise of Insigma and Ansaldo STS – USSI will prove to be a valuable alliance as we provide much needed transportation improvements in China,” said Mr. Zhao Jian, chairman of Insigma Group Co., Ltd. “Our design teams will work in tandem to provide our customers with the successful delivery of a safe, reliable transit system.” 

Under their alliance, the two companies provide CBTC signaling systems to mass transit agencies throughout China. Ansaldo STS – USSI serves as the technology supplier and through a license agreement, enables Insigma, the prime contractor, to perform a great portion of the work associated with the delivery of automatic train control systems to customers in China. 

The new projects are for the design and implementation of CBTC signaling systems for Shenyang Metro Company’s Line 2 and Chengdu Metro Company’s Line 1. Together these lines add a total of 40 km (24.85 miles) in new mass transit service. USSI and Insigma have been working together on Shenyang Line 1, a 29km (18 mile) line since 2006. 

“The partnership with Insigma is a cornerstone of our ‘go to market’ strategy in China,” said Dr. Alan E. Calegari, president and CEO of Ansaldo STS – Union Switch & Signal. “Through a mutually defined plan, our organizations can better interpret and address the requirements of the Chinese customers while providing win-win opportunities for both companies to learn from each other’s core competencies.”

By 2013, China plans to invest nearly US$50 billion to construct about 1,000 km (about 621 miles) of metro lines in the main Chinese towns. World Railway Market Weekly estimates that before 2020, 5,000 km (3,106 miles) of new metro lines may be built in China.