CRRC has told several rail vehicle-making subsidiaries to cut freight-car production, involving about 50% of its total freight-car manufacturing capacity. Three subsidiary companies will fully withdraw from freight-car production, according to a CRRC source who declined to be identified.
CRRC currently operates 10 freight-car production subsidiaries, with total capacity to produce more than 80,000 vehicles a year. But most of the subsidiaries have been mired in a business slump reflecting weakened cargo transportation demands amid an economic slowdown and excess supply.
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