CRRC will purchase products from Israeli businesses under a compensation agreement

State-owned rolling stock manufacturer China Railway Rolling Stock Corporation (CRRC) will purchase $ 68 million (€ 56 million) from Israeli companies under an offset agreement informs Railway Supply magazine with reference to Railway Technology

CRRC will purchase products
Picture: CRRC

This agreement was included in the Israeli government tender won by CRRC to supply wagons for Israel’s light rail system. Construction of light rail in the coastal municipality of Tel Aviv-Jaffa is planned for 2023.

High-speed train to run on different rail systems

After lengthy negotiations, an offset agreement was signed between the CRRC and the Industrial Cooperation Office of the Israeli Ministry of Economy and Industry.

According to the agreement, CRRC will carry out mutual purchases from 12 firms in Israel.

The $ 68 million purchases include $ 21 million (€ 17 million) of equipment, $ 13 million (€ 10.5 million) services and work, $ 5 million (€ 4 million) training, research and development with Israeli universities in the amount of $ 9 million. (7.6 million euros).

In addition, the agreement covers approximately $ 20.55 million (€ 17 million) in future investments in equipment acquisition and research and development.

Related:

Alstom signs contract for the supply of trains for the Bucharest metro