GE Announces Framework Agreement with CSR to Invest in Rail Technologies, Build High-Speed Rail and Urban Transit Vehicles for U.S. Market

• Follows 2009 MOU GE signed with China’s Ministry of Railways (MOR)
• Represents $50 million investment, supporting 250 U.S. high-tech manufacturing jobs by 2012
• Establishes joint venture as first U.S. manufacturer ready to supply high-speed rail technology for two proposed corridors in Florida and California
• Combines CSR's rail development and operations experience with GE's U.S. manufacturing and supply chain expertise to advance rail technology offerings

ERIE, Pa. & BEIJING --(BUSINESS WIRE)-- GE today announced a cooperative framework agreement with CSR Corporation Limited (CSR) to establish a U.S.-based joint venture to advance high-speed and other rail technology in the U.S. The partnership represents an investment of approximately $50 million in the joint venture with the potential to sustain or create 250 U.S. jobs by 2012 for the first phase of the agreement.

This collaboration establishes the GE Transportation - CSR joint venture as the first U.S. manufacturer ready to supply high-speed rail (HSR) passenger trains for the two proposed true U.S. HSR corridors in Florida and California. The agreement also advances passenger rail transport through the manufacturing of medium-speed passenger trains and transit rail vehicles for urban areas in the U.S.

“We are committed to advancing the global high-speed rail technology market and this agreement provides a significant opportunity for infrastructure and business growth,” said GE Vice Chairman John Rice. “It is in line with GE's company-to-country initiatives and will help support investment and high-tech job growth in America.”

The agreement is another critical step to support and advance passenger rail development in the U.S., following the memorandum of understanding (MOU) GE signed with China’s Ministry of Railways (MOR) in November 2009.

GE and CSR are committed to maximizing U.S. content in high-speed passenger trains to meet Buy America standards. In addition, all final production will be in the U.S., sustaining approximately 3,500 long-term high-tech manufacturing U.S. jobs in support of the joint venture. GE is the world leader in diesel-electric locomotive technology and this agreement is a step towards expanding offerings to manufacture high-speed passenger trains or EMUs (Electric Multiple Units).

Zhao Xiaogang, Chairman of CSR said, CSR and GE will create a leading passenger transportation business in the U.S. by combining CSR's extensive experience in developing and operating high-speed, medium-speed EMUs and urban rail transit vehicles with GE's manufacturing and supply chain management expertise in America, as well as in-depth knowledge of the U.S. rail market.

“CSR is one of the world’s largest transportation equipment companies,” Xiaogang said. “It has the strong experience and advanced skills in the design, manufacture, testing, repair and maintenance of high-speed and medium-speed EMUs and urban rail transit vehicles.”

China is a leader in high-speed rail technology for speeds of 220 miles per hour and higher. By 2020, China plans to expand its railway network to span 120,000 kilometers, including 16,000 kilometers of dedicated high-speed rail track.

GE is working with CSR to provide China with the world’s most technologically advanced, fuel-efficient and low-emissions diesel-electric, heavy-haul locomotive. Three-hundred of these locomotives have already been placed into operation by the MOR. Current and past projects in cooperation with China’s MOR have sustained or created approximately 100 high-tech manufacturing jobs for GE and hundreds more for GE suppliers across America.

GE Transportation and the MOR also signed a separate MOU to broaden their joint rail technology cooperation to serve China and North America and develop joint business opportunities for the U.S. rail market. This includes plans to develop additional diesel locomotive technology and deploy fuel saving rail software solutions like Trip Optimizer to the Chinese market. The MOR will also promote GE’s ITCS signaling technology in the Western part of China.

About GE Transportation

Established more than 100 years ago, GE Transportation, a unit of General Electric Company (NYSE: GE), is a global technology leader and supplier to the railroad, marine, drilling, mining and wind industries. GE provides freight and passenger locomotives, railway signaling and communications systems, information technology solutions, marine engines, motorized drive systems for mining trucks and drills, high-quality replacement parts and value added services. GE Transportation is headquartered in Erie, Pennsylvania, USA, and employs approximately 8,000 employees worldwide. For more information, visit www.getransportation.com.