China Railway Engineering Corporation

Not to be confused with China Railway Construction Corporation, another railway infrastructure enterprise in the PR China.

China Railway Engineering Corporation
中国铁路工程总公司

Type	Public
Traded as	SEHK: 390 SSE: 601390
Industry	Infrastructure
Founded	1950
Headquarters	Beijing, People's Republic of China
Area served	People's Republic of China
Key people	Chairman: Mr. Shi Dahua
Products	Railways
Services	Railway infrastructure
Employees	~220,000
Website	www.crec.cn/

The China Railway Engineering Corporation (Traditional Chinese:中國中鐵 or 中國鐵路工程總公司, Simplified Chinese: 中国中铁 or 中国铁路工程总公司), or simply CREC, is a large-scale state-owned enterprise in the People's Republic of China.

The corporation runs a spectrum of businesses covering surveying and designing, construction and installation, manufacturing, R&D, technical consulting, capital management as well as international economic and trade activities. Its headquarters are located in Beijing.

CREC is under the supervision by the State Council of the People's Republic of China.

Scope

CREC is the third largest civil construction enterprise in the world, and the Asian and Chinese largest railway, road and tunnel construction contractor. It has a leading position in China's construction market, and participates in many large-scale infrastructure projects overseas (especially in countries in the Southeast Asia and Africa). Fortune magazine in the United States reported that CREC ranked 342 in the 500 world's largest enterprises in 2007.

Structure

CREC consists of 31 member enterprises including:

- 16 super-large construction enterprises

• China National Overseas Engineering Corporation
• China Railway Resources Co., Ltd.
• China Railway First Group Corporation
• China Railway Erju Group Corporation (China Railway Second Group Corporation)
• Third Engineering Group Co. Ltd
• China Tiesiju Civil Engineering Group Co. Ltd (China Fourth Group Civil Engineering Group Co. Ltd)
• China Railway Wuju Group Corporation (China Railway Fifth Group Corporation)
• China Railway Sixth Group Co. Ltd
• China Railway Seventh Group Co. Ltd
• China Railway Eighth Civil Engineering Group Corporation
• China Railway No. 9 Group Co. Ltd
• China Railway No. 10 Group Corporation
• China Zhongtie Major Bridge Engineering Group Co. Ltd (China Railway Major Bridge Engineering Group Co. Ltd)
• China Railway Tunnel Group
• China Railway Electrification Bureau Co. Ltd
• China Railway Construction Engineering Group

- 3 large or super large surveying and designing enterprises

• Second Survey and Design Institute of China Railway
• China Railway Engineering Consultants Group
• China Major Bridge Survey and Design Institute

- 3 large R&D enterprises

• Northwest Research Institute
• Southwest Research Institute of CREC
• Engineering Machinery Research and Design Institute

- 5 large manufacturing enterprises

• China Railway Shanhaiguan Bridge Group Co. Ltd
• China Railway Turnout Bridge Inc.
• China Railway Bus. Co. Ltd.
• Wuhan Engineering Machinery Works of CREC
• Hengping Trust and Investment Co. Ltd.

In addition there are 4 organizations directly run by the Headquarters and 17 subsidiary companies and project companies. CREC's construction teams are found in over 1,000 cities throughout China except Taiwan Province (now administrated by the Republic of China).

IPO

In November 2007, CREC announced that it would be listing A shares and H shares on the Shanghai and Hong Kong respectively.

The IPO price of A share ranged from 4 to 4.8 Chinese yuan while that of H share ranged from 5.03 to 5.78 Hong Kong dollar.

Member of HSCEI

CREC joined the Hang Seng China Enterprises Index from 10 March 2008.^[1]

Subsidiary Companies

One of the CREC's subsidiary companies, China Railway Erju Group, has been listed in Shanghai Stock Exchange previously.

First China company attempt to make public highway in Europe

This company was the first large Chinese enterprise to win a public tender to build a highway in Europe. They entered the agreement to carry out the construction of two parts of the A2 highway in Poland, a total length of 50km.^[2] Their bid amounted to half of the cost initially estimated by the Polish officials.

In May 2011 COVEC experienced financial liquidity problems and ceased payments to the subcontractors. As a result, the work was halted. In response to the ultimatum given by the Polish government, COVEC decided to withdraw from the project.^[3] There are serious doubts as to whether the company will be able to pay the PLN 741 million in penalties, as the company's assets in Poland account for approximately PLN 130 million.^[4]

See also

Companies portal

• China Civil Engineering Construction Company (CCEC)
• Real estate in the People's Republic of China

References

1. ^ CREC joined Hang Seng China Enterprises Index
2. ^ http://news.bbc.co.uk/2/hi/8259153.stm
3. ^ http://www.motogazeta.mojeauto.pl/Polskie_drogi/Chinski_COVEC_wycofuje_sie_z_budowy_autostrady_A2,a,191136.html
4. ^ http://gospodarka.gazeta.pl/gospodarka/1,33181,9731816,_Dziennik_Gazeta_Prawna___autostrada_na_slowo_honoru.html

External links

• CREC Official Website