Midas clinches $64 million of contracts for train car body components

Midas Holdings said on Monday that it has won 318 million yuan (S$64.4 million) worth of contracts for high-speed train car body components worth from CNR Tangshan Railway Vehicle Company.

The deals were won by Midas subsidiary Jilin Midas Aluminium Industries Company.

Jilin Midas will supply aluminium alloy extrusion profiles and certain fabricated parts for high-speed trains that will operate at speeds up to 350 kilometres per hour.

The components are slated for delivery this year. The contracts are expected to contribute positively to Midas' financial performance for the financial year ending Dec 31 this year.

"We are delighted to have secured the group's first set of orders for PRC high-speed train car body components in 2014," said Mr Patrick Chew, executive director and chief executive of Midas.

"With the (China) government's commitment and continued efforts to grow China's rail network, we remain positive on the market opportunities in the year ahead."

The contracts are Midas' second set of orders for high-speed train car body components from CNR Tangshan since China reopened tenders in August last year.

In October last year, the company had won high-speed train car body components orders worth 167.5 million yuan from CNR Tangshan and CNR Changchun Railway Vehicle Company.