China Southern car company won 5.3 billion Yuan diesel locomotive contract

December 1, China Southern Car (601766.　　SH/01766.HK) issued a notice that its wholly-owned subsidiary of the South Car Qishuyan Locomotive Co., Ltd. received the Ministry of Railways Beijing Railway Bureau HXN5-type high-power diesel locomotive sales contract, the contract amount of 5.3 billion yuan, accounting for 2009 annual operating income of 11.4%.　　China Southern Car propaganda department in an interview, said the number of the contract is 300 units, the end of this year will be delivered a batch, October 2011 expected delivery completed.　　The diesel locomotive business is one of the earliest business of the South vehicle, according to the company 2009 Annual report, the locomotive business accounted for more than 20% in the company's sales revenue. Although China will mainly develop electric locomotives in the future, diesel locomotives will remain an important strategic standby vehicle and some of the areas can not be replaced by transport power. In addition, the future prospects for diesel locomotives remain good, particularly in the areas of exports to Asia, the Americas and Africa.　　One analyst at Haitong Securities said. South Car Qishuyan Locomotive Co., Ltd. in the second half of 2009 with General Electric's GE Transportation Group set up a joint venture, in China to develop and manufacture GE Evolution Series locomotive diesel engine and provide services.　　The joint venture is expected to begin production in the second half of 2011. The group's propaganda ministry said it was uncertain whether the 300-HXN5 high-power diesel locomotives would use the joint-venture engine.