Vossloh AG has finalised the sale of its Vossloh Locomotives business unit to CRRC Zhuzhou Locomotive (CRRC ZELC) on May 29.
On April 27, the German Federal Cartel Office, Bundeskartellamt, has cleared the acquisition process meaning that all the required approvals in Germany and abroad were granted.
The sale of Locomotives unit is seen as the “end of a fundamental realignment” of Vossloh AG. “From now on, Vossloh’s focus will be entirely on rail infrastructure products and services. I am delighted that in CRRC ZELC we have found a strong, reliable and above all long-term buyer for our former Locomotives unit. We are convinced that the future prospects of Locomotives will improve significantly with CRRC ZELC as new owner,” said Oliver Schuster, the Chief Executive Officer of Vossloh AG.
Vossloh Locomotives business unit, which is headquartered in Kiel, develops and produces diesel-electric locomotives and offers all the maintenance and repair services that they require.
In 2019 CRRC and Vossloh signed an agreement for the sale of the Locomotives unit and in April 2020, Bundeskartellamt cleared the acquisition by CRRC Zhuzhou Locomotives.
In 2019, Vossloh Locomotives had a turnover of over EUR 100 million and employed 500 people.
Over the last few years, Vossloh Locomotives’ competitiveness faced challenges. In 2014, a sale decision was made.
This acquisition is a milestone for CRRC which is hugely interested to enter European railway market. Although the Chinese company supplied shunting locomotives to DB and to Rail Cargo Hungaria, its success in Europe has been limited.
Currently, CRRC has 150,000 employees and had a turnover of EUR 27.5 billion in 2018.
With Locomotives, following its decision on the strategic focus on rail infrastructure, Vossloh is selling the last of originally three business units of the Transport division. The former Rail Vehicles and Electrical Systems business units were sold in 2015 and 2017.