June 03, 2013

Škoda licenses ForCity LRV to China

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Škoda licenses ForCity LRV to China Quintus Vosman

ŠKODA Transportation has agreed a 10-year technology licensing contract with CSR Qingdao Sifang to produce up to 400 ForCity (15T) low-floor LRV cars for the Chinese market.

ForCity is currently in operation in Prague (pictured) and Riga, Latvia, and Škoda says entry into China is part of its strategy to grow its presence in international markets. The contract could be worth Koruna 5bn ($US 252.5m).

"No foreign company can succeed in China without the support of a domestic company" says Mr Petr Vízdal, director of business development at Škoda Transportation. "The fact that we have closed the contract with a strong partner, the Chinese company CSR Sifang, may mean that other trade possibilities open up to us."

Škoda is the latest manufacturer to license its LRV technology for sale in China following similar agreements between AnsaldoBreda and Chongqing Chuanyi Automation (SICC) and Bombardier and CSR Puzhen. Voith Engineering Services is also developing a new LRV for China in conjunction with Xiangtan Electric Manufacturing Group.

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