CRRC Qingdao Sifang, a Chinese rolling stock manufacturer, has recently formalised its entry into Brazil with the installation of a train factory in São Paulo for projects.

The inauguration was attended by Brazilian head of state Lula da Silva at the factory, which has been installed in a former unit of South Korean automaker Hyundai that ceased operations in the municipality of Araraquara.

Beijing-based CRRC expects the factory to begin producing trains in the second half of this year. The new facility is supported by the National Bank for Economic and Social Development (BNDES), the government's development arm, through financing contracts totalling 5.6 billion reais.

These funds will be allocated to the expansion of São Paulo's metro Line 2 and the construction of a medium-speed train connecting the state capital with the city of Campinas, which are approximately 100 kilometres apart. A total of 44 trains will be produced at CRRC's factory to serve these two ambitious railway projects in the country's most populous and industrialised state.

(Source: O Jornal Económico, on 25 March)