www.crrcgc.cc

LC & SD Report for Transnet 232 D45 Locomotive Project

August 2016

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CRRC Business Segments

Mainline

Transit

The Largest World Leading Rail Transit System Provider, 2015 Revenues: USD 37 billion, Ranks 266 of Top 500 world Companies.

Urban

Infra-structure

DiversifiedIndustry

Modern Service

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Profile

CRRC History

1881

XugezhuangWorks

founded

The history of CRRC is the history of Chinese railway

1959

Industry Bureau of MOR

1986

China National Railway Loco. &

Rolling Stock Industry Corp.

2000

Split into two CNR and CSR

2015

CRRC Corporation

Limited

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Project Overview

232 Diesel Locomotives

Phase3 -197 Localization Locos in SA

Phase2 -15 KD Locos Assembly in SA

Phase1 -20 Locos Manufactured by OEM

2014

2015

2016 2017 2018-Contract Signed

-Design and Prototype -36th Localization Locos in SA

-20 Loco completed -Last loco finished in 2018

-15 KD Loco Started to Manufactured in SA -Warranty & Service

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Project Overview

D45 Class Locomotive Project

Technical Features

High Power (3300 kW)

Biggest Power Narrow Gauge D-L Worldwide

Low Energy Consumption

World Leading Technology

Implement Features

Wide Scope Technical Transfer

Improve Capacity of Loco

Manufacturing Capacity

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Local Content & Supplier Development

Localization Overview

6

• 3.4 Bil Rand,1.8 Bil have been signed and more than 30 local suppliers will be contracted in the project.

Local Procurement

• 2.2 Billion Rand of components be manufactured locally.

Local Production

-Reduction in import leakage

-Build and expand local production

-Improve local manufacturers’ capabilities

-Job Creation and Job Preservation

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Local Content and Supplier Development

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47.76%

Local content commitment :55% SD commitment: 64%

42%

Technical transfer- 3300 drawings ,220 technological files and 61 quality files have been transferred

- 3P guidance and local support

Skill development178 local employee have been trained in SA and China and more than 381 employee will be trained directly and indirectly.

Job creation and preservation234 direct and indirect jobs have been created and preserved , more than 325 direct and indirect jobs will create and preserved in the future

IndustrializationDirect and indirect investment is about 123 million Rand

Support to local supplier

Contracted To be contracted

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Local Content and Supplier Development

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Ducting system

Booyco Engineering

Coupler

Scaw

EngineMTU SA

Battery:FNB

Brake and vacum pipes

Vanrail

Electric System

TE and local potential suppliers

Traction System

Yongji SA

Assembly of locomotive

Transnet Engineering

Brake System

Knorr SA

TM blower

Penbro

Door

Siyahamba

Cab seats

Isrin SA

Air Conditioning

Booyco Engineering

Bogie

TE

MSU Bearing

SKF SA

Alternators

Yongji SA

Traction Motors

Yongji SA CNR is still under negotiation and finalize with local suppliers

Car Body

TE

Lighting System

Radel

IEM Waymark

Windows

Fuel Tank

TE

Corridor Floor

TE

Battery

FNB

Wiggins Fuel filler

FloSolve

Wiper

TE

Window

Siyahamba

Fridge

Minus 40

Toilet

Aeroservices

Brake ResistorMicrelettria

Brake and vacumpipes

Vanrail

Sanding Trap

Vanrail

Wheels

Nalneladi

Journey Bearing

Timken SA

South Africa Local Components

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Further Activities For SD & LC

Extend Local Procurement

Capacity Improvement

Technical Support

Social Contribution

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Local Content and Supplier Development

• Further Activities- Local Procurement

中国中车股份有限公司版权所有 2015 10

Local procurement

Axles

Gear case

Axle box

Wheel

Traction blower

U-tube

Radiator

Traction motor

CRRC will purchase more critical components locally and intend to bring more investment to local facility to build local production.

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Capacity &Capabilities improvement

CRRC focus on the following issues cooperate with South Africa Partners.

Technical support

Quality management

Create more jobs

and skilled staffSocial contribution

Local Content and Supplier Development

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Vision & Recommendation

标题文本

此处为文本占位符示意

Research & Supplier Cooperation

Long Term Partner in SA & Africa

Further Field Cooperation

WIN

Thanks！