Alstom SA of France has signed a contract worth 1.2 billion euros (1.5 billion dollars) for the delivery of 500 freight locomotives to China, according to the agreement seen by an AFP reporter.

Alstom will link up with China's Datong Electric Locomotive to deliver the trains, with Alstom's share of the contract coming to 300 million euros (380 million dollars), the agreement said.

Alstom signed the agreement on the sidelines of a visit to Beijing by French President Jacques Chirac, who is accompanied by a high-powered business delegation.

Alstom will be in charge of designing the locomotives, described by Alstom Chief Executive Patrick Kron as "the most powerful in the world."

The first 110 of the locomotives will be produced at Alstom's plant in Belfort, France, before production moves to facilities in north China operated by Datong Electronic Locomotives.

China's booming economy is struggling with serious transportation bottlenecks and railways are expected to play an important role in relieving the situation, offering great opportunities for foreign companies.

According to government plans, China's railway network will be increased by a third in the next 15 years, from the current roughly 75,000 kilometers to 100,000 kilometers (from 47,000 to 63,000 miles). — AFP
Alstom SA of France has signed a contract worth 1.2 billion euros (1.5 billion dollars) for the delivery of 500 freight locomotives to China, according to the agreement seen by an AFP reporter.

Alstom will link up with China's Datong Electric Locomotive to deliver the trains, with Alstom's share of the contract coming to 300 million euros (380 million dollars), the agreement said.

Alstom signed the agreement on the sidelines of a visit to Beijing by French President Jacques Chirac, who is accompanied by a high-powered business delegation.