(Yicai Global) Sept. 22 -- Sun Yongcai, former executive director of CRRC Group Corp., a Chinese state-owned rolling stock giant, will take over as director and general manager of the group, and run as a candidate to be president of CRRC Corp. Ltd. [SHA:601766], a company affiliate.
Xi Guohua, former general manager, left his position to become board chairman of Xinxing Cathay International Group., a state-owned metal processing firm, in July this year, leaving his former role vacant, news outlet Caixin reported on Sept. 21.
Born in 1964, Sun worked as a technical expert and chief engineer for China CNR Corp. Ltd., CRRC Group’s predecessor, for some time. In 2015, CNR and CSR Corp. merged to become CRRC, where Sun served as vice president. In June 2017, Sun became executive director.
Once its management team is complete, CRRC will commit to industrial structural adjustments, a company insider said. The company has a structural overcapacity problem in rail transit, so needs to make changes.
CRRC can produce more than 9,000 subway trains a year, according to data from Caixin, but annual demand is only around 5,000. Excess supply in the sector has seen profit margins fall to about 10 percent.