Alstom to Acquire 51% Share in Commuter Transport & Locomotive Engineering
Image Courtesy of Alstom
Alstom has agreed to buy a 51% share in South African rail company Commuter Transport & Locomotive Engineering (CTLE). CTLEs expertise in the modernisation of rolling stock makes it a valuable player in the Southern African rail market. CTE and IDC have each sold a portion of their shares but will remain shareholders in the company.
The agreement will be subject to approval by anti-trust authorities and once finalised, Alstom will begin the integration process. This will provide CTLE with the opportunity to deliver comprehensive services to the rail sector, including infrastructure, signaling, rolling stock and components.
CTLE is located in the Ekurhuleni region in Nigel, east of Johannesburg. It currently employs 450 people and has an 80,000m2 manufacturing site. Last year it had a turnover of in excess of 15million.
Alstom South Africa
The acquisition is intended to solidify Alstoms presence in the area, and deliver a more robust industrial and commercial base for operations. It also provides Alstom the opportunity to broaden its portfolio of rail products and solutions.
Gian-Luca Erbacci, senior vice president of Alstom Middle-East and Africa said:
“We are delighted to sign this agreement with our South African partners. This is a win-win partnership that will strengthen the rail sector in South Africa, boost its economy and, in the long term, address the needs of other countries in the Southern African region.
Alstom already conducts business in South Africa by way of a local joint venture with Gibela. It is also a contributor to one of South Africas most ambitious transport projects by supplying 600 XTrapolis Mega commuter trains to the Passenger Rail Agency of South Africa (PRASA).