The new company will focus on rail communication, signalling and integrated monitoring systems for the Chinese mass transit and rail markets. Each company will have a 50% share in the new venture, which will be known as Bombardier NUG Signalling Solutions.

Mr Jianwei Zhang, Bombardier China president, says: "Bombardier has been actively participating in the development of China's rail transportation providing a broad range of products, systems and services, including rail signalling equipment. This new joint venture is one of our strategies to ensure our sustainable success in this huge but fiercely competitive market."