As the approval power of intra-city rail transportation projects are given to local governments, a new construction upsurge of intra-city rail transportation has taken place nationwide with the construction of subways to be most noticeable. According to some statistics, more than 70 subway lines are under construction in China and 28 cities have begun the construction of subway. 

The subway compartment is mainly made of either aluminium or stainless steel, each constituting 50% of the market share. Each material has its own strengths, but aluminium is more superior in terms of light-weight and energy saving. Relevant information suggests that the total planned length of the urban transportation network in China has reached 5,000 kilometers, and the total investment is estimated to be more than RMB800 billion. In general, the intra-city rail transportation is estimated to purchase 2,000 aluminium-bodied trains, representing 16,000 tonnes of industrial aluminium extrusion products.

Rapid development of urban rail transportation has driven the demand for aluminium extrusion profiles. However, only a few domestic corporations are able to enter the market.

Due to the complexity and difficulties in controlling the production process, the technical levels for the production of aluminium extrusion products applied to intra-city rail vehicles are very high. Several years ago, China was heavily relied on the imported aluminium extrusion products for intra-city rail vehicles, causing its price to peak at RMB130,000 per tonne, almost tenfold more than that of aluminium ingots. 

As the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest in Asia and China, China Zhongwang has successfully secured some production work for six subway trains of Fuzhou Subway. At the year end of 2013, CNR Tangshan Railway Vehicle Co., Ltd. (‘TRC’ for short below) successfully bided Fuzhou Subway Line No. 1 project which included the manufacturing of six aluminium alloy subway trains. TRC adopted public bidding process and. China Zhongwang was selected out of many to take the project.  

“TRC selected China Zhongwang as the aluminium alloy compartment supplier is a positive affirmation for our technology and strength. Recently, China Zhongwang has completed the installation of two subway trains and delivered to TRC. Remaining orders are currently underway.” The spokesman of China Zhongwang said, “The deep-processing center, which was put into full production in 2013, has successfully developed an array of new light-weight products, such as aluminium fire trucks, garbage trucks, high-speed rail compartments for frozen zones and semi-trailers. In 2013, the sales volume of deep-processed products was increased by 91.1% to approximately 53,000 tonnes and revenue was increased by 52.9% to approximately RMB1.47 billion. It demonstrates that deep-processing business will further enhance the Group"s R&D strengths and core competitiveness.”