Midas' JV company secures $233.88mln Shanghai Metro contract

Deal to supply 24 train sets, or 144 train cars, for Shanghai Metro Line 13 Project.

Mainboard-listed Midas Holdings Limited is pleased to announce that the Shanghai Rail Transport Line 13 Development Co., Ltd. has awarded a RMB1.14 billion (S$233.88 million) contract to its joint venture company, Nanjing SR Puzhen Rail Transport Co., Ltd. (NPRT), and consortium partners, Siemens Traction Equipment Ltd., Zhuzhou, Siemens Ltd., China, and Siemens International Trading Ltd., Shanghai. NPRT has an estimated 70% share of this contract.

Under the terms of the RMB1.14 billion (S$233.88 million) contract, NPRT and its consortium partners will supply 24 metro train sets (1 train set = 6 train cars) for the Shanghai Metro Line 13 Project, according to a Midas report.

The train sets are expected to be delivered from 2012 to 2013. As such, this contract is expected to have a positive impact on the financial results for the financial years ending 2012 and 2013; and is not expected to have a material impact on the Group’s financial results for the current financial year ending December 31, 2010.

Midas has a 32.5% equity stake in NPRT, a Sino-foreign joint venture, engaged in the development, manufacture and sale of metro trains, bogies and their related parts.

Mr Patrick Chew, CEO of Midas, said, “We are delighted with NPRT and its consortium partners’ latest contract clinched for the Shanghai Line 13 Project, as it strengthens NPRT’s project portfolio. As many cities in the PRC continue to build new metro lines or upgrade their metro train infrastructure, we are positive on the outlook of NPRT’s growth going forward and its positive impact on Midas’ Aluminium Alloy Division.”