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Siemens and Alstom to Merge Rail Operations

  • APICS staff

German industrial manufacturer Siemens is merging its mobility business with French train maker Alstom to create a European rail giant. The resulting company, Siemens Alstom, aims to compete with China Railway Rolling Stock Corporation, according to The New York Times.  

Once bitter rivals, Siemens and Alstom together will have an international presence in more than 60 countries, including China, the United States, Africa and India. This will better position the duo to compete with the Chinese-state-sanctioned rail business, which has aggressively maneuvered to expand internationally as a part of a larger economic and geopolitical agenda.

“The combination of Alstom and Siemens Mobility will bring to its customers and ultimately to all citizens smarter and more efficient systems to meet [the] mobility challenges of cities and countries,” said Henri Poupart-Lafarge, Alstom’s chief executive, in the article.

In the deal, which is expected to close by the end of the year, Siemens will transfer its mobility business — which makes rail and signaling equipment — to Alstom for a 50 percent stake in the combined company. Paris-based Siemens Alstom should have a revenue of about $18 billion and 62,300 employees worldwide.


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