Hollysys Automation Technologies Announces Signing of a $22 Million High Speed Railway Control Systems Contract
Jul 16, 2008
BEIJING, China – July 16, 2008 – Hollysys Automation Technologies, Ltd. (OTCBB: HollysysYF) ("Hollysys" or "the Company"), today announced that the Company, along with its partner Ansaldo STS, has been awarded a contract by the People's Republic of China (PRC) Ministry of Railways for the design, construction, implementation, and maintenance of a new 300 kilometer per hour high speed rail line. When completed, this rail line will span 459 kilometers, or approximately 285 miles, and link Zhengzhou in Henan province and Xi'an in Shaanxi province.
The project was awarded to a consortium formed by Hollysys and Ansaldo STS, a leading technology company listed on the Milan Stock Exchange that operates in the global Railway and Mass Transit Transportation Systems business. The total contract value amounts to RMB660 million, or approximately US$97 million, with Hollysys' portion for the control system amounting to RMB151 million, or approximately US$22 million. Hollysys will begin recognizing revenues upon the commencement of the project in the current quarter. The project is expected to be completed by the end of 2009.
Dr. Wang Changli, Hollysys' Chief Executive Officer commented, "The 300 kilometer per hour high speed train will be one of the fastest passenger trains in China and we are very excited to announce that Hollysys has been awarded the automation control system contract for this prestigious project. We have been successful in implementing our control systems in the current 200 kilometer per hour high speed rail lines in China and this new contract for the more advanced 300 kilometer per hour rail line is a testament to our high quality system design and performance.
Hollysys is one of only five companies authorized by China's Ministry of Railways to provide automation control systems for its railway systems, one of only three companies that have the capability to provide control systems for high speed rail networks and one of only two companies able to provide automation systems for trains with speeds of 300 kilometers per hour or greater. Based on our track record and close cooperation with the Ministry of Railways, we believe that Hollysys is well positioned to receive additional contracts in this 300 kilometer per hour rail category."
Hollysys Automation Technologies has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing numerous projects utilizing a wide array of automation products. The Company specializes in the research, development, production, sale and distribution of industrial automation and control systems, competing effectively with both domestic Chinese companies and large, multinational participants in the industrial, rail and nuclear power sectors. Hollysys adopts the philosophy - "concern the customers with sincerity", with the capabilities of technology innovation, it is focusing on industrial automation, covering digital railway signal & information systems, e-government, motor drive & transmission and safety control of nuclear power reactors. To know more, start here: www.hollysys.com.
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