China Railroad Rolling Stock Corporation (CRRC), the world's largest rolling stock manufacturer and one owned by the communist Chinese government, has been awarded a $137.5 million contract for 45 new commuter rail trains for the MBTA or the Massachusetts Bay Transportation Authority.
MBTA is the public agency responsible for operating most public transportation services in Greater Boston, Massachusetts.
With subsidies from the Chinese government, CRRC heavily underbid other competitors for the MBTA contract by hundreds of millions of dollars, according to Boston media. The company, which is based in Beijing and employs over 176,000 people, is also building a $95 million factory in Springfield expected to employ 150 persons as part of the deal.
The Springfield factory will build the trains under the new MBTA contract and will also build new subway cars for Los Angeles's transit system. Assembly work for both jobs will take place in Springfield.
The factory broke ground in 2015 and is expected to begin delivering vehicles for the MBTA in 2018. The new MBTA vehicles are expected to begin assembly next year.
In April, some 30 employees at the Springfield factory will travel to China for three months of orientation and training.
In October 2014, CRRC awarded a 284 vehicle order (since expanded to 404 vehicles) for metro cars for MBTA's Red and Orange lines with a $556.6 million bid. This contract was CRRC's first in the United States, and was led directly to three other multi-million dollar contracts in Philadelphia, Los Angeles and Chicago.
CRRC has been the low bidder in all US cities where it has won contracts. The company said its low prices resulting from its global footprint and existing supply chains allow it to underbid its competitors by millions of dollars.
In late 2015, CRRC began building a 13,900 square meter assembly plant in Springfield at a former Westinghouse plant.
CRRC is a huge company formed by the merger of two Chinese rail manufacturers: China CNR Corporation and CSR Corporation Ltd.