Midas' joint venture company bags $224 million deal to supply train sets

A subsidiary of mainboard-listed Midas Holdings has bagged a 1.1 billion yuan (S$224 million) contract to supply trains to Nanjing Metro Group.

The joint venture company, Nanjing SR Puzhen Rail Transport (NPRT), and two other partners will be supplying 29 train sets or 174 train cars for the Nanjing Metro Line 4 Phase 1 project.

The trains cars are expected to be delivery between 2014 and 2016, and this conrtact is expected to contribute positively to Midas' financial performance over the same period.

Chief executive of Midas, Mr Patrick Chew, said: "This is NPRT's fourth and largest contract in the year.

"Backed by its strong positioning as a leading licensed metro train manufacturer in China, NPRT is well-positioned to benefit from positive industry developments."

Midas has a 32.5 per cent equity stake in NPRT, a Sino-foreign joint venture, which develops, manufactures and sells metro trains, bogies and their related parts.

This announcement comes about a week after Midas' said that it had clinched a 420 million yuan contract to supply 56 train cars to MTR Corporation (Shenzhen) on May 29.

It had said then that NPRT's year-to-date contracts had crossed 1.4 billion yuan.

Midas' shares closed down 1.5 cents at 48 cents before the announcement was made.