(Yicai Global) May 10 -- The world's largest rolling stock maker CRRC Corp. has set up a freight train subsidiary in northeastern China as it looks to reorganize its assets in the cargo segment.

CRRC Qiqihar Co. was formed through the restructuring of CRRC Qiqihar Rolling Stock Group Co. and four wholly-owned units based in the provinces of Liaoning, Hebei and Shandong and Inner Mongolia Autonomous Region, state-owned news agency Xinhua reported.

Beijing-based CRRC Corp. announced in November that it would split its struggling freight train business into two in a bid to slash overcapacity and reduce competition, after orders plunged to 6,000 in 2016 from 40,000 in 2012. The second proposed unit, CRRC Yangtze Co., is yet to be formally established.

The new company has registered capital of CNY6.7 billion (USD1.1 billion) and employs 20,300 people, the report added. Its core focus will be exporting freight trains to more than 30 countries, including the United States and Australia, and it will run five subsidiaries, one each in Qiqihar, Shenyang, Shijiazhuang, Shandong province and Inner Mongolia Autonomous Region.

As well as cargo train production, CRRC Qiqihar will also create machinery for container transport, environmental protection and intelligent equipment.

Editor: James Boynton