Vossloh announced the proposed sale of the Kiel, Germany, based Vossloh Locomotives business to CRRC in August following a lengthy sale process, having originally announced the intention to sell the Transportation and Locomotives businesses in 2014.
Vossloh had invested in a new factory for the Locomotives business, in part so it could be sold as a going concern. If the planned sale goes ahead it appears likely that CRRC will expand the product range from the current low/medium power diesel locomotives to encompass other rolling stock - either at the Kiel site or possibly elsewhere in the European Union.
The entry of CRRC into the European market - while European competitors are largely restricted in the Chinese market - has led to objections and criticism of the planned sale by industry bodies and this is likely to influence the German government’s decisions on whether to approve the sale.
CRRC has reportedly filed the necessary application for approval of the proposed acquisition with the Federal Ministry for Economic Affairs and Energy and is now awaiting a decision.
