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F A I V E L E Y
a C t i v i t y r E p o r t 2 0 1 4 / 1 5
F A I V E L E Y
onev i s i o n
CEo’s message � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 8
our Executive Committee � � � � � � � � � � � � � � � � � � � � � � � � � � � 10
our performance 2014/15 � � � � � � � � � � � � � � � � � � � � � � � � � � � 11
our market � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 12
ones t r a t E g y
shape � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 15
Execute � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 16
Create � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 17
Develop � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 18
grow talent � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 19
a solid platform for growth � � � � � � � � � � � � � � � � � � � � � � � � � 20
onep o r t f o l i o
access & Mobility � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 22
Brakes & safety � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 24
Energy & Comfort � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26
services � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 28
China � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 30
ASIA-PACIFIC
22%
Sales by geographic region
EUROPE
61%
REST OF THE WORLD
1%
AMERICAS
16%
ASIA-PACIFIC
27%EUROPE
61%
AMERICAS
12%
Workforce by geographic region
SERVICES
42%
BRAKES & SAFETY
24%
Sales by division
ACCESS & MOBILITY
14%ENERGY
& COMFORT
20%
A worldwide partner
55 sites INCLUDING:
51 COMMERCIAL SITES
44 PRODUCTION & MAINTENANCE SITES
12 CENTRES OF COMPETENCE
OVER
5,700EMPLOYEES IN 24 COUNTRIES
€1,048 MILLIONSALES
Europe
Asia-PacificAmericas
Centres of Competence
Commercial sites
People
Production and maintenance sites
22 21
12 3,518
19 14
1,540 10 9
698
Faiveley Transport is a global supplier of engineering solutions for the railway industry. With some
5,700 employees in 24 countries, the Group comprises five operating Divisions; three of which are
product-based, one is a provider of services and another is devoted solely to China, the world’s biggest
market for high-speed railways. At a product level, our Divisions are Brakes & Safety, Energy & Comfort,
and Access & Mobility. All our Divisions work together as One Faiveley, and believe in our three core
values of being Reliable, Passionate and Collaborative. We also share a common vision of the Group’s
future, which is set out in a comprehensive mid-term plan: Creating Value 2018.
V i S i O n
Door leaf inspection after painting Saint-Pierre-des-Corps, France.
Reli ableWE ARE ACCOunTABlE
AnD TRuST WORThy PARTnERS.
WE CAn BE COunTED On.WE DEliVER OuR COMMiTMEnTS
WiTh inTEGRiT y.
Collab orativeWE WORk AS A GlOBAl TE AM.
WE ShARE OuR knOWlEDGE
AnD BEliE VE in OuR
COllECTiVE COnTRiBuTiOn.
WE l iSTEn TO AnD
RESPECT E ACh OThER.
HVAC components assembly Shanghai, China.
Passi onateWE ARE PASSiOnATE ABOuT R AilWAyS.
WE BuilD On ThEM TO ADDRESS
OuR CuSTOMERS nEEDS
CRE ATiVEly AnD SWiF Tly.
PASSiOn AnD E xPERTiSE ARE
ThE Pill ARS OF OuR CR AF T.
Overhaul of an SW4 distributor Amiens, France.
Activity report 2014/15 FAiveley trAnSPort 9FAiveley trAnSPort Activity report 2014/15 8
O n e V I S I O n
Stéphane Rambaud-meaSSon, Chief exeCutive offiCeR of faiveley tRanSpoRt and ChaiRman of the management boaRd, diSCuSSeS the 2014/15 finanCial yeaR and the Company’S StRategiC plan, CReating value 2018.
What is your assessment of 2014/15?
One of the most striking achievements
was the strong recovery in our order intake:
we reached a backlog of €1.877 billion,
a testimony to the renewed confidence
of our customers in Faiveley Transport.
Sales passed the billion-euro mark
for the first time in the company’s history,
at €1.048 billion, and we delivered €46 million
more in free cash flow than the previous year
to reach €63.6 million. Finally, our Group
Operating Profit was right on forecast at
€95.3 million. That said, we know there is still
room for improvement in our profitability.
it was a good year overall, characterized
by real improvements in project execution
and quality, a much improved relationship
with our main customers and changes
in our organization and governance.
internally, What Were the year’s major activities?
The main topic on the agenda was to improve
customer satisfaction; and that can only be
achieved by having a competitive offer and by
delivering on all contractual targets, on time
and on quality. We have now rebuilt our
project management processes, governance
and teams in many areas, with the result that
our customers are clearly more satisfied – and
we are winning more orders. We adapted our
Faiveley Worldwide Excellence program (FWE)
so that it more closely reflects our business
model of small-batch, highly engineered
products to order. integrated in FWE, our
improved Faiveley Management System (FMS)
is supporting the harmonization of all our
processes whilst providing a strong foundation
for operational excellence.
Our new shared ERP* platform is also
a key enabler of FWE and it was rolled out
in several sites last year. As a company,
we moved from being a site-based
organization to having three global
product-line Divisions – plus one Services
Division and one regional Division in China,
with full responsibility for their P&l, product
strategy, industrial footprint and customer
base. Clearly, this was a significant change.
What Were the year’s highlights in terms of contracts?
We have been successful in almost all
our regions and in all segments, with a high
volume of small and mid-sized orders
a positive year, a promising future
and we intend to at least maintain those
positions. We are already a market leader
in innovation, but we want to be a leader
in quality, customer satisfaction and project
execution. We also want Faiveley Transport
to be a place where teams and individuals
can develop and be part of exciting projects.
What Will be involved in deploying this plan?
in terms of delivery, the milestones will be
highly visible. So, for example, our industrial
footprint in Europe will be a lot more
balanced between east and west, thanks
to a new plant we are building in Plzen,
Czech Republic. We are also looking
to make our global footprint more competitive
over the long term. At a product level,
we will be delivering new technologies such
as the Faiveley neoflexx© Disc, which is
already well-received by the market,
and ESP4C©, our compact door operator.
As part of the Faiveley Worldwide Excellence
program, our new ERP* system will be
deployed at 12 major sites by the end
of 2015/16, with 12 sites also being certified
as FWE-compliant by the end of 2016/17.
in financial terms, our sales target
is €1.3 billion for 2017/18, with a
Group operating profit margin of 11%-12%
and a cumulated free cash flow over 3 years
of at least €110 million.
hoW Would you describe the prospects for faiveley transport?
We have a solid, motivated team in place,
with new management and new leadership,
and an experienced team at operating
level that is fully committed to delivering.
Our plan is pragmatic, and designed
for impact. We are very positive about
our market: there is a good market
in Original Equipment and a very good one
in Services. Taken together, we believe
that everything is in place to create value.
* Enterprise Resource Planning.
– which spreads our risk in terms of contract
execution and proves we can win contracts
in all geographies. We also saw repeat
orders from previous major platforms
in Western Europe and secured some major
new orders, such as the €45 million contract
in Singapore, where we have a joint venture
with our customer SMRT. We have also been
very successful in Services by being proactive
in addressing our installed base and proposing
new added-value services. Delivering parts
on time and helping customers to make
the most of their assets is key to this
continued success.
the rail sector has undergone massive changes over the last decade. hoW does this affect faiveley transport?
The industry is moving from a Western
Europe-centric customer base to a global one,
where Asia – and specifically China – has
a major role. By far the largest car builder,
by virtually every parameter, is Chinese.
We therefore need a strategy and a footprint
that is compatible with this customer base
and it is one reason why we created a
dedicated China Division. We need to be close
to our customers, and to understand their
needs. Other changes in the industry involve
safety standards, technical requirements
and reliability levels, which have all become
more demanding, as well as life-cycle cost
optimization, and the ever growing importance
of after sales: less than a decade ago,
Services represented less than 30% of our
sales: today it’s more than 40%, and rising.
in may 2015, you unveiled creating value 2018. What is its scope?
We devoted a great deal of time and energy
to drawing up Creating Value 2018. it is
a mid-term plan for rebuilding and projecting
a vision for our company moving forward.
it has five key building blocks and sets out
our objectives for customers, shareholders
and our teams. in each of our product lines
and our geographies, we are currently either
the market leader or among the top three;
Activity report 2014/15 FAiveley trAnSPort 11FAiveley trAnSPort Activity report 2014/15 10
O n e V I S I O n
* newcomers. (1) Over the 2014/15 financial year.(2) Figures restated for iFRS 10,11 and 12 impact.
From left to right:
our executive committee
the gRoup enhanCed itS exeCutive Committee
in 2014/15 by appointing new membeRS with
an inteRnational baCkgRound.
Stéphane Rambaud-meaSSOnChief Executive Officer
and Chairman of the Management Board
GuIllaume bOuhOuRSChief Financial Officer
Member of the Management Board
SImOn ChaRleSWORthVice President Sales & Marketing
thOmaS FeSeRVice President Corporate Development
OlIVIeR RaVItPresident Energy & Comfort
Ralph FüRdeReR *Chief Technology Officer
Jun he *President China
JéRôme SpenCeR *President Services
alaIn deSChêneS *Vice President
Operations
lIlIan leROuXPresident Brakes & Safety
RémI CauSSePresident Access & Mobility
Jérôme Spencer and Jun he have joined as Presidents
of the Services and China Divisions respectively.
Alain Deschênes is Vice President of Operations
and Ralph Fürderer is our Chief Technology Officer.
Along with overseeing our Faiveley Worldwide Excel-
lence improvement program and other operational
initiatives, the Executive Committee was closely
involved with the drawing up of Creating Value 2018.
The plan was designed pragmatically in three distinct
stages over a six-month period, starting with top-
down guidance from Stéphane Rambaud-Measson to
our Divisions and Group functions as to the key needs
and objectives. The Divisions Presidents and other
senior Group executives then put forward proposals
for achieving those targets. Members of the Executive
Committee subsequently made adjustments, accord-
ing to Group priorities, and allocated resources.
sales pass €1 bn euro marK for 1st time
Several factors contributed to this result: the Group’s ability to ramp-up serial production for major projects, a marked improvement in customer satisfaction and the growth of our Services Division. The dynamism of the freight business in the uS also played a key role. Sales were consistent across all our regions.
a record order booK
The Group achieved a record order intake in the second half of the year – for both Original Equipment and Services, highlighting the progress made in our recovery program. Renewed customer confidence was underlined by a record backlog, which stood at approximately 30 months for Original Equipment and 10 months for Services.
an increase in operating profits
Group operating profit rose by 8.7% over the period, despite localized cost overruns in certain projects and significant turnaround investments.
These positive figures reflect the Group’s renewed strength in project execution and the subsequent increase in customer satisfaction.
our performance 2014/15
€1,048 millionsales in 2014/15
€63.6 millionfree cash floW
9.1%group operating
margin
order book(in millions of €)
sales and operating margin(in millions of €)
2014(2)20132012201120102015 20152014(2)2013201220112010
957988
901914876
13.9%13.5%11.2%
9.2%
10.4%
1,0481,877
9.1%
+13.1%(1) +9.5%(1)
1,6601,616
1,690
1,453
1,301
2014(2)20132012201120102015 20152014(2)2013201220112010
957988
901914876
13.9%13.5%11.2%
9.2%
10.4%
1,0481,877
9.1%
+13.1%(1) +9.5%(1)
1,6601,616
1,690
1,453
1,301
Operating margin (% of sales)
12
3
4
FAiveley trAnSPort Activity report 2014/15 12
O n e V I S I O n
our market
identified in original equipment
The outlook for Faiveley Transport is a positive one, with the Original Equipment market set to grow from €5.1 billion in 2013-14 to €5.3 billion in 2016-17. That forecast also reflects a number of long-term trends. A combination of population growth and increasing urbanization means that mass transit will be the main driver of this rising market, especially in the Asia-Pacific region. At the same time, a growing environmental awareness will favor the rail sector, while a number of network operators will face the need for fleet renewal.
While urban transit will lead the way, the locomotives market is expected to increase, particularly as a result of major projects in emerging countries, and the high-speed segment is forecast to remain stable. in terms of geography, China and north America will provide most of the growth, though metro projects in india will also contribute. A market slowdown is anticipated in Europe, driven by lower volumes in high-speed and regional EMu.
1 Western europeExpected market decrease, despite new projects
Major investments in metro and commuter networks (London, Berlin, Paris region)
Market slowdown in high-speed and regional EMUs
Lack of funding in Southern Europe
3 chinaStrong market with continued growth
Sustained demand for high-speed trains
Steady growth in inter-city segment
Continuing development of metro segment, driven by urbanization
Emerging LRV segment with large investments
2 north americaDynamic market dominated by freight
Freight market still pulled by strength of US GDP* (sustained need for new locomotives; wagons market at its highest level in 2015-16)
One large very high-speed order expected
4 indiaEmerging market with real potential
Authorities providing stimulus for economy, including rail sector
Rapid growth of metro segment
Major locomotive projects resumed
S T R A T E G y
Our mid-term plan is designed to maximize Faiveley Transport’s potential for profitable growth
and competitiveness over the 2015-18 period. To achieve this goal, we are focusing on five strategic
building blocks: Shape, Execute, Create, Develop and Grow talent. These building blocks involve
all the key operational aspects of our business, and each of them is structured around detailed
action plans and clear deliverables. Together, they will enable us to create value for customers,
shareholders and the Group as a whole.
creating value 2018
4 key strategic geographies
Source: Faiveley Transport internal estimates. * Growth Domestic Product.
Shape2018
CREATINGVALUE
Activity report 2014/15 FAiveley trAnSPort 15FAiveley trAnSPort Activity report 2014/15 14
O n e S t R at e G y
The global reach and the internal organization
of Faiveley Transport are two topics of crucial
importance to the Group’s future. As a result,
we have developed strategies that will shape the
way we do business in both areas. in terms of
our industrial footprint, the strategy is two-fold:
to develop manufacturing and supply bases in
low-cost regions, while strengthening engineer-
ing and project management at our established
Centres of Competence.
developing our WorldWide footprint
As an example of this strategy, Faiveley Transport
is investing in a new industrial site near Plzen
in the Czech Republic that will replace existing
facilities in the country at Blovice. initially, the
new plant will focus on pantograph assembly,
but its scope will later be expanded to include
the assembly of brake, coupler and door compo-
nents. Covering 20,000 square meters, it will be
Faiveley Transport’s second largest production
facility worldwide and will employ 400-450 people
when it reaches peak capacity in 2018. Similarly,
the Group also plans to develop its existing indus-
trial presence in india, which is currently focused
on brake systems but which will be extended to
include other product lines. The twin objective in
india is to satisfy growing local demand and to
also meet the export needs of a number of major
train manufacturers who have chosen india as an
offshore industrial base.
handing poWer to the divisions
From an organizational point of view, the shaping
process also focuses on two areas; our operat-
ing Divisions and our functional departments. For
the Divisions, the emphasis is on giving them full
responsibility for their activities – and providing
significantly increased resources to enable them
to deliver on their objectives. Those resources
include project management, engineering, qual-
ity, procurement and the supply chain. That same
desire to concentrate resources where they can
be most successfully deployed is also behind the
creation of the China Division. led by Jun he,
the new Division is equipped with its own man-
agement team to ensure full alignment with the
Chinese market in terms of products, costs and
specific customer requirements. it will also enable
Faiveley Transport to respond rapidly to a grow-
ing market and reflects our determination to be a
world-class player.
more independence for human resources and finance
Creating Value 2018 provides a new model for the
Finance and human Resources functions, which
will now operate as independent business part-
ners from the sites and Divisions. This will allow to
implement a stricter governance as well as allow
to standardize key processes across the organiza-
tion. The change will also see human Resources
and Finance providing improved services to the
Divisions as their business partners.
faiveley tRanSpoRt iS Shaping itS induStRial footpRint
and oRganization to meet the needS of an inCReaSingly
global CuStomeR baSe. CompetitiveneSS and effiCienCy,
whiCh aRe eSSential foR the gRoup’S long-teRm futuRe,
aRe the inSpiRation behind theSe impRovementS.
Stéphane Rambaud-meaSSOnChief Executive Officer and Chairman of the Management Board
“competitiveness is absolutely central to creating value 2018. Where we operate around the world and how we are organized will be decisive for the delivery of competitive solutions to our customers.”
Adapt our industrial footprint and our organization to improve
our performance and our competitiveness.
Achieve operational excellence, in terms of Quality, Project
management, On-Time Delivery in order to provide full satisfaction
to our customers and improve our financial performance.
invest in Product and System innovation to maintain a
technological edge, meet customers’ needs and improve
our competitiveness.
Focus and accelerate our commercial initiatives to
achieve steady and profitable growth that outpaces the rail
market.
Promote a shared culture and a working environment which foster talent development and
team commitment.
Shape execute Create
develop grow talent
Activity report 2014/15 FAiveley trAnSPort 17FAiveley trAnSPort Activity report 2014/15 16
O n e S t R at e G y
faiveley tRanSpoRt haS been a leading teChnology pRovideR foR
the Railway induStRy foR almoSt a CentuRy and ouR CommeRCial
SuCCeSS haS been built on a longStanding talent foR innovation.
CReating value 2018 will fuRtheR StRengthen that link between
new ideaS and maRket needS.
Create
To achieve our aim of consistently being best- in-
class for manufacturing and project execution,
Faiveley Transport has embarked on a Group-wide
change program focusing on two critical areas;
standardization, through the ongoing Faiveley
Worldwide Excellence (FWE) program, and gov-
ernance, which is being strengthened by a number
of different strategic initiatives. Their common goal
is to deliver customer satisfaction and improved
financial performance.
delivering on faiveley WorldWide eXcellence
The FWE Program was launched during the fis-
cal year 2013-14 and is designed to standardize
the way we operate across our organization. it is
structured around two main blocks; the Faiveley
Management System, which sets out the model
and best practices for managing all of our business
activities, and the internal Control manual, which
defines the way we identify, assess and deal with
risk. Both these aspects of FWE are supported by
the rollout of new, global iT tools that will harmo-
nize our procedures in three key areas – Enterprise
Resource Planning (ERP), Product Data Manage-
ment (PDM) and Customer Relationship Manage-
ment (CRM).
The tools, which will facilitate cooperation among
different teams involved in the same project, will
also enable the Group to measure its performance
in these areas. Currently being deployed across
all Faiveley Transport sites worldwide, a minimum
of 10 of our locations will have the new ERP sys-
tem installed by May 2016. An important element
As a market leader in its industry, Faiveley Transport
devotes 2% of Group sales – excluding customer
projects – to its Research and Development pro-
grams. innovation, both at a product and a system
level, provides not only the means to maintain our
technological advantage and meet the evolving
needs of our customers, but also to improve the
competitiveness of our solutions.
the demand for energy efficiency
The Group’s R&D activities are closely aligned to
a number of key trends among our customers,
led by the need for greater energy efficiency and
a reduction in mass. With energy representing a
significant share of train operators’ overheads,
there is a growing requirement to reduce power
consumption in all electrical equipment, whether
for new builds or retrofits. By the same token,
car builders and operators are also seeking a
reduction in the mass of train components and
sub-assemblies, given the relationship between
weight and energy cost. Clearly, both these trends
also address the far broader issue of the trans-
port sector’s carbon footprint. integrating new,
more energy efficient systems and lighter weight
components to their rolling stock can make a real
contribution to the sustainability objectives of
network operators.
a neW generation of products
Two other current trends are the demand for
ever-higher levels of reliability, so as to maximize
asset availability, and both a reduction in the initial
of FWE is certification, which will be delivered
following an internal audit to ensure that a site
has met all the program’s objectives. Our aim is to
have six sites certified by May 2016, and a further
six by May 2017.
strengthening our operational functions
To strengthen our operational governance, we
have established a Project Management Office
(PMO). The PMO has a broad mandate that
includes defining project management best prac-
tices, the training and coaching of project man-
agers, and conducting performance audits on
our project portfolios. Our ability to accurately
meet customer requirements and to achieve both
on-time and on-quality delivery depends heav-
ily upon having an efficient project management
organization, and support by effective project
governance. Along with the PMO, we have also
introduced a Group Operations Department, a
Supplier Development Program and a series of
strategic initiatives in the area of purchasing and
the supply chain. To support our sites in delivering
these changes efficiently, the Group has provided
an appropriate level of staffing, and recruitment
where necessary.
product cost and an optimization of the total
life cycle cost. Two examples of that innova-
tion at work were presented in September 2014
at innoTrans, the rail industry trade fair in Berlin:
the new generation of axle-mounted brake
disks, the Faiveley neoFlexx® Disc, and a new
ultra-compact door mechanism for mass transit
applications, ESP4C®.
improving life-cycle cost for operators
The Faiveley neoFlexx® Disc offers lower wear
rates and a high resistance to mechanical and
thermal stress. These features significantly extend
its lifespan – thereby reducing operating costs –
and improve its performance. Produced by a
revolutionary manufacturing process involving
electron beam welding, the unit is also 25 kilo-
grams lighter and more energy-efficient than con-
ventional discs and conforms to rail industry uiC
and European En standards. using a more effi-
cient manufacturing process also means signifi-
cantly shortening market lead times. ESP4C® has
meanwhile been developed with service-proven
components for sliding plug doors in the light rail
and metro markets. The mechanism features an
optimized design in terms of space and weight,
low sound emissions and high levels of quality
and reliability.
opeRational exCellenCe iS key to CuStomeR SatiSfaCtion,
whiCh in tuRn dRiveS ouR finanCial peRfoRmanCe. to aChieve
thiS exCellenCe we aRe deploying StRategiC initiativeS
and impRovementS foCuSing on the way we manage ouR pRojeCtS
and opeRationS, all with the objeCtive to SeCuRe ouR quality
and on-time deliveRy CommitmentS.
execute
alaIn deSChêneSVice President Group Operations
“faiveley Worldwide excellence is a transversal and focused program for improvement. Within this context, we are determined to become world-class in project management and will devote all necessary resources to achieve this.”
Ralph FüRdeReRChief Technology Officer
“sustainability and energy consumption have become key issues for the railway sector. our product innovation roadmaps are very clearly focused on improving the efficiency of our customers’ equipment – and the industry as a whole.”
Activity report 2014/15 FAiveley trAnSPort 19FAiveley trAnSPort Activity report 2014/15 18
O n e S t R at e G y
With more than 5,700 employees around the
world, harnessing the talent and spirit of team-
work among our people is a priority for Faiveley
Transport as it looks to the future. in terms of tal-
ent development, the Group will be taking a more
proactive approach to identifying, developing and
motivating our high-potential employees, across
both functions and geographies.
a shared corporate culture
We will also review policies in the area of incen-
tives at every level of the organization, and estab-
lish a greater emphasis on employee feedback
and succession planning. As part of our 2015-18
strategic plan, all of our talent initiatives will be
reviewed on a quarterly basis by senior man-
agement. We will also be devoting considerable
attention to the way that individuals work together
as a team and share a common set of values.
having completed a year of transition, in which
a largely site-based organization has been trans-
formed into operating Divisions with a consider-
able degree of autonomy, a key focus of Creating
Value 2018 will be to promote a shared culture;
One Faiveley.
values eXpressed by employees
As part of that promotion exercise, the Group will
communicate internally about the three shared
values – “Reliable–Collaborative–Passionate” –
that emerged from our change process. Each of
these reflects the way we view our industry, our
customers and ourselves, and will be used in
decision-making processes moving forward. it is
also significant that these values were not cas-
caded down by senior management. They are
instead the result of an exercise carried out dur-
ing 2014-15 among a number of our employees at
multiple sites. Theirs are the voices and opinions
expressed in these values.
it iS an aCCepted faCt that whateveR advanCed teChnologieS
it may poSSeSS, a Company iS only aS good aS itS employeeS.
faiveley tRanSpoRt iS Committed to pRomoting a ShaRed CultuRe
in whiCh ouR people Can flouRiSh and develop theiR talent.
teamwoRk iS alSo an eSSential paRt of that CultuRe.
grow talent
The Group’s target over the 2015-18 period is to
grow faster than the rail market as a whole. To
achieve this, we will concentrate our commer-
cial efforts in three areas: specific geographies,
services and M&A opportunities. in geographical
terms, Faiveley Transport has four strategic mar-
kets: China, india, north America and Western
Europe. The first three markets offer significant
potential, either through their intrinsic rail mar-
ket growth, or because of the opportunities to
increase our market share in certain segments.
Western Europe remains the Group’s core region,
due to its size and its role as a base for major car
builders and their engineering teams – including
for projects in emerging markets, such as the Mid-
dle East and South East Asia.
developing our services to customers
A second key activity will be to accelerate an
already successful strategy of developing the
Group’s Services Division. having worked with
our major customers for many decades, Faiveley
Transport has accumulated a huge installed base
of equipment. The challenge is to further unlock the
full potential of that base, principally by adopting
proactive sales strategies and being systematic in
the way we deploy them. Our objective is to posi-
tion Faiveley Transport as a ‘one-stop shop’ for
our customers and to demonstrate how we can
meet their needs across the full spectrum of ser-
vices, equipment and parts. in terms of our market
offer, we will expand the range of our engineering
services and seek to maximize sales volumes. in
part, we will achieve this through operational excel-
lence that is aligned to the needs of our custom-
ers and helps them to achieve their fleet availability
objectives. We will also aim to develop sales by
proposing equipment retrofits that, for example,
offer lower energy consumption, lower weight,
increased reliability and improved life-cycle cost.
increasing our sales activities
As part of this strategy, the Group is already
entering into an increasing number of long-term
commitments with customers to provide ser-
vices over the entire lifetime of the equipment. To
support the development of the Services Division
portfolio, the Group will also be strengthening its
sales and engineering teams and deploying a
series of growth initiatives among the customer
base. Forming innovative new partnerships with
operators, where we can share maintenance pro-
grams, will be another commercial objective in
the years ahead.
seeKing opportunities for acquisitions
Finally, along with organic growth, the Group will
also seek to increase its position in high-growth
markets through external growth opportunities.
The aim here will be to consolidate the Group’s
position, either in a given market segment or a
specific region, or in a complementary technol-
ogy, with the intention of creating value over the
medium term. Typical areas could include safety-
related components and safety electronics.
Steady, pRofitable gRowth iS a majoR taRget of CReating value 2018.
to fuRtheR develop ouR buSineSS, faiveley tRanSpoRt
will foCuS on maRketS in key RegionS of the woRld, itS StRength
in SeRviCeS and the potential foR gRowth thRough meRgeRS
and aCquiSitionS.
develop
faiveley transport:a set of shared values
reliableWe can be counted on. We deliver our
commitments with integrity. We are accountable and trustworthy partners.
collaborative
We work as a global team. We listen to and respect each other. We share our knowledge
and believe in our collective contribution.
passionateWe are passionate about railways.
Passion and expertise are the pillars of our craft. We build on them
to address our customers’ needs creatively and swiftly.
GuIllaume bOuhOuRSChief Financial Officer
“faiveley transport has a wealth of talent among its many teams around the world. the challenge now is to help our most gifted people to reach their full potential in their chosen careers.”
thOmaS FeSeRVice President Corporate Development
SImOn ChaRleSWORthVice President Sales and Marketing
“creating value 2018 is a plan for growth. We will be focusing our resources wherever we see opportunities to significantly develop the business – whether that involves geographies, products or other companies.”
FAiveley trAnSPort Activity report 2014/15 20
O n e S t R at e G y
Our product Divisions - Brakes & Safety, Energy & Comfort, and Access & Mobility – are responsible
for the design, manufacture and marketing of our equipment. The Services Division then provides
maintenance, retrofits and spares that enable customers to optimize the availability and life-cycle
cost of our products. All of these activities have been brought under one roof in the China Division,
so that our teams can tailor our equipment and services to meet the precise requirements of the
world’s biggest railway market.
P O R T F O l i O
a solid platform for growth
thRough a CleaR aCtion plan, CReating value 2018
iS deSigned to fuRtheR impRove the finanCial
peRfoRmanCe of faiveley tRanSpoRt.
The successful delivery of Creating Value 2018 will
lead to sustained growth for Faiveley Transport, and
an improvement in the key indicators of the Group’s
financial performance. Our strategic goals are there-
fore linked to a series of precise financial objec-
tives, notably with a projected rise in sales from
€1.05 billion in 2014/15 to €1.30 billion in 2017/18.
Among the factors driving this growth will be a con-
tinued development of our Services Division, which is
expected to account for more than 47% of total sales
by the end of the plan, compared to 42% in 2014/15
and less than 30% more than a decade ago.
increases in group operating profit
As our industrial footprint continues to expand and
our ability to address growth markets increases,
we also forecast a rise in the share of sales out-
side Europe from 39% to more than 45% of total
sales over the same period. The plan will also drive
a sustained improvement in the competitiveness of
Faiveley Transport – an essential feature of Creat-
ing Value 2018. The combination of our develop-
ing footprint, improvements in contract execution,
the deployment of innovative new products and
our sales development should deliver a significant
increase in margins, from 9% to 11-12%. Exclud-
ing any external growth through M&A activity, these
percentages would translate as Group Operating
Profit of €125 million to €140 million.
a positive corporate turnaround
Clearly, the Group will be heavily investing in new
plant, new teams, equipment and iT systems as part
of its strategic plan. As a result, capital expenditure
is expected to increase to approximately 3.5% of
sales over the next two financial years. Once this
deployment phase is complete, capex is forecast to
come back to its historical level of 2.2% in 2017/18.
Overall, the Group’s free cash flow generation should
remain strong, with more than €110 million free cash
flow generated from 2015/16 to 2017/18. Faiveley
Transport’s positive financial results for 2014/15, in
terms of order intake, backlog, sales growth and free
cash flow are both an indicator of the turnaround in
the Group’s performance and an encouraging sign
for the period covered by Creating Value 2018.
€1.3 billionsales in 2017-18
financial objectives
> €110 millionfree cash floW
generation cumulated over 3 years
11% to 12%group operating margin
Before restructuring
2
4
3
5
5
1
Activity report 2014/15 FAiveley trAnSPort 23FAiveley trAnSPort Activity report 2014/15 22
O n e p O Rt F O l I O
access & mobility
Two distinct activities are covered by the Access & Mobility Division, each having its own
business unit. A complete range of doors and access products cover both the external and
internal doors of all types of train, and are marketed as Original Equipment to car builders.
Faiveley Transport is meanwhile the market leader worldwide in platform screen doors and
automatic gates, supplying both the door systems and the surrounding glass and metals
panels. Some 32,000 modules have been delivered to train manufacturers, civil engineering
companies and rail authorities since the range was fi rst launched in 1989 – an installed base
that would stretch for 170 kilometers if laid end to end.
delivering on major projects, securing neW orders
The twin focus in 2014-15 was to ensure progress on a series of existing major contracts,
notably door systems for Germany’s iCx high-speed trains, and to secure new orders from
both ongoing and new projects. The Division achieved all of these objectives during the year.
Series production of the doors for Siemens and Bombardier is on track, while new follow-on
orders have been secured in France for door systems for a further 40 TGV high-speed trains,
along with another 34 Regiolis and 30 Regio 2n regional trains. The Division also delivered a
strong performance outside Europe, securing contracts for the Salvador metro in Brazil and
the East-West Fleet Extension in hong kong. A highlight of the Division’s growing business
in Asia was a €15 million order in india to equip 486 cars using line 7 of the Delhi metro. The
contract is particularly signifi cant as it will be the fi rst access doors system to be manufac-
tured in india by Faiveley Transport, using our production facility at hosur, south of Bangalore.
Keeping metro trains moving
For platform doors, delivery continued on a series of major ongoing programs. A total of
40 projects are scheduled to be delivered between 2011 to 2020. To support our customer by
preventing any disruption to daytime commuter services, Faiveley Transport has developed a
special process for the retrofi tting of our platform doors and gates for the lille metro project in
northern France. This innovative process enables sections to be installed during a three-hour
period overnight, when the lille network is closed. Two new contracts stood out during 2014-
15, in Sydney and Riyadh. The fi rst platform doors in Australia will be installed by Faiveley
Transport, following a €35 million order from the northwest Rapid Transit consortium. Plat-
form doors and gates will be provided for the north West Rail link, Sydney’s new rapid transit
rail system. in Saudi Arabia, Faiveley Transport has been awarded a major platform door
contract by Ansaldo STS for line 3 of the Riyadh metro. As part of a fl agship infrastructure
project in the Middle East, full-height doors that have been specially engineered to cope with
the climatic conditions will be supplied for 44 platforms.
25COUNTRIES HAVE BEEN SUPPLIED WITH FAIVELEY TRANSPORT PLATFORM DOORS AND GATES
RémI CauSSePresident Access & Mobility
“in terms of platform doors, creating value 2018 will help us to focus on standardizing our offer, reducing installation time and delivering innovation with our clear-flowtm product. for access doors, the development of lighter, more compact products will gradually transform our portfolio. together, these initiatives will help the division to become even more competitive.”
1 Platform doors 2 Automatic platform gates 3 Access doors 4 Movable step and ramp
for disabled person 5 Interior doors
Door leaf painting inspection Saint-pierre-des-Corps, France.
Automatic platform gates installation helsinki, Finland.
improved access and comfort with clear-flowtm
As metro services everywhere continue to grow and station platforms become ever busier, the demand for platform screen doors has followed a similarly upward trend. For more than a quarter of a century, Faiveley Transport has made a major contribution to passenger safety and the effi ciency of metro operators as the world’s No. 1 supplier of platform doors. To maintain that position, we are continually creating new solutions. Based on the product presented to the public for the fi rst time at
the InnoTrans trade fair in Berlin during September 2014, our latest development is Clear-FlowTM, a new type of platform gate that offers higher, safer and aesthetically improved platform edge barriers. Designed to facilitate installation for both new build and retrofi t projects with its modular approach, the gate was presented at InnoTrans with lean-to seats on the fi xed part of the barrier. Along with improving the comfort and safety of passengers, Clear-FlowTM also enhances station architecture.
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Activity report 2014/15 FAiveley trAnSPort 25FAiveley trAnSPort Activity report 2014/15 24
O n e p O Rt F O l I O
brakes & safety
To refl ect the wide diversity of its markets, the Brakes & Safety Division features three busi-
ness units: transit brakes, freight and couplers. That diversity is refl ected not only in their
product portfolios, but also in the types of solutions needed by our customers. Our brakes
for transit systems are designed for high speed, regional, metro and tramway networks alike,
and cover the entire command chain from the handle in the driver’s cab to the brake disks and
pads on the wheels. The transit brakes market is largely project-based and driven by a high
degree of customization for each contract.
in contrast, the freight sector is characterized by off-the-shelf products that share a great
deal of commonality. Faiveley Transport supplies a range of wagon brake components to
this market, including a very successful integrated bogie brake that offers high-performance
braking while reducing the wagons’ tare weight. The freight business unit also produces a
wide range of buffers.
Over the past year the Division has refi ned its portfolio of couplers following the acquisition
in 2013/14 of Schwab Verkehrstechnik AG, a leading Swiss-based supplier of both couplers
and buffers.
meeting the needs of a groWing marKet in india
Among the major orders received during 2014-15 was a contract from Alstom Transport for
brake systems and couplers to equip trainsets destined for the kochi metro in kerala, South-
ern india. Our hosur facility in india will be involved in the engineering and manufacture of
these systems. Faiveley Transport also has a production facility in Baddi, northern india,
which is largely dedicated to the needs of the national operator indian Railways.
in Europe, new orders for braking systems were placed by Bombardier and Alstom for the
Regio 2n and Regiolis regional trains respectively. As part of its portfolio, Faiveley Transport
has the market’s most advanced sanding system – for improving adhesion between vehicle
and track. Orders in 2014/15 included units for the Siemens inspiro metro lines in Riyadh and
a fl eet of Siemens Vectron locomotives purchased by Finland’s state railway.
major orders in north america and for couplers
For freight, the year witnessed signifi cant growth in north America, where the Group operates
through a majority-owned joint venture, Amsted Rail-Faiveley (ARF). With 73,000 car builds
over the period, Original Equipment sales rose 113% as ARF delivered a record year in terms
of sales, with improvements in On Time Delivery playing a key role in enabling ARF to respond
to this increased market demand.
Along with the kochi contract, orders for the couplers business unit included part of a
€7 million project to equip some 250 cars of the lima metro in Peru.
98%ON TIME DELIVERY BY ARF JV’S PLANT IN GREENVILLE, USA
lIlIan leROuXPresident Brakes & Safety
“for brakes & safety, the 2015-18 strategic plan will drive our transition to becoming one of the most efficient players in the market. from brakes to couplers, the aim is to increase efficiency at every step of project execution – a process that will involve greater standardization and modularization of our products.”
1 Couplers and/or Draw gear 2 Buffers and self lubricated
buffers 3 Air Generation and
Treatment Unit 4 Brake Control (Pneumatic,
electro-pneumatic and electronic)
5 Brake frame 6 Wheel and axle mounted
discs 7 Disc and tread brake units 8 Magnetic track brake 9 Sanding 10 Pantograph Compressor
Brake frame assembly amiens, France.
Coupler assembly Witten, Germany.
staying safe with parklock® brakesWhether it’s stationary freight wagons at a customer location or locomotives at a rail yard, parking brakes have an important role to play in ensuring safety and protecting operators’ assets. Faiveley Transport not only has an established track record in this fi eld, but a commitment to innovation. At the InnoTrans trade fair in Berlin during September 2014, the Group provided a worldwide preview of its latest development in this area – the ParkLock® concept. ParkLock® offers twice the braking force compared to previous parking brakes, yet requires only half the amount of space – due to its reduced number of components. This new concept replaces the spring system with a mechanical block of the service brake, which is already present in the system. Along with its superior braking performance, the concept offers several other benefi ts: as a light, compact product, ParkLock® contributes to vehicle lightweighting – and a positive impact on energy consumption – and also offers greater reliability. Taken together, these elements also provide an improved life-cycle cost for the customer.
Paris
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Activity report 2014/15 FAiveley trAnSPort 27FAiveley trAnSPort Activity report 2014/15 26
O n e p O Rt F O l I O
energy & comfort
demetra: driving energy efficiency from the cabKnown in the industry as On Train Metering, the ability to accurately measure a train’s electricity consumption has never been more important. Two factors are driving this – the growing deregulation of electricity grids means that operators need accurate billing for their trains, while the need to lower energy consumption and the rail industry’s carbon footprint has become increasingly urgent. Faiveley Transport is a leader in this fi eld with its Demetra energy meters, and in 2015 we began delivering the largest contract in Europe since the EU standard for meters (EN50463) was introduced. Some 600 Demetra systems are now being retrofi tted to 300 of the SNCF’s TGV high-speed trains. Along with precise billing information, studies have shown that a train driver’s ability to monitor consumption in real-time can lead to energy savings of up to 25% per journey. Demetra can be installed in a matter of hours, avoiding any costly downtime to train operators.
The creation of the Energy & Comfort Division brought together most of the products related
to a train’s energy management chain – from its source in the pantographs to its various
applications throughout the cab and cars, with the exception of traction. The Division oper-
ates through two business units: Power & information (P&i), and heating, Ventilation and
Air Conditioning (hVAC), where Faiveley is the market leader worldwide. The Division's key
objectives are to identify and further develop future product synergies and to meet needs
common to all our customers or namely to reduce weight as well as the space envelope, to
increase effi ciency and to reduce energy consumption and maintenance costs.
Faiveley Transport is already doing so by making its latest hVAC systems more compact and
equipping them with energy-saving features such as built-in DC to AC power inverters that
regulate consumption according to need and reduce life-cycle costs.
a leadership position in the World marKet
in the hVAC sector, Faiveley Transport’s business unit remains a world leader, setting the
rail industry standard with a global business presence and production facilities in Europe,
the united States and China. its systems provide heating and cooling in driver cabs and
passenger cars alike, and are constantly being improved. in 2014/15, a decision was taken
to produce hVAC units for local and export markets in Faiveley Transport’s plant in hosur,
south of Bangalore, india. The Power & information portfolio covers the full spectrum of pan-
tographs and poles, roof-mounted switches and contactors, Auxiliary Power Supplies (APS),
passenger information systems, CCTV, energy meters, event recorders, radars and speed
sensors. With the exception of pantographs and APS, the Group's markets for these product
areas had mainly been based in Europe or embedded in Western European car builders’ plat-
forms. The formation in 2014/15 of a global, centralized sales organization for P&i with fi ve
key Regions will enable the business unit to become a truly international force.
innovation that drives neW business
A contract with Singapore Rail Engineering in 2014/15 underlined how our commitment
to product innovation is a driver of new business. An order worth more than €45 million
was secured to upgrade the hVAC and APS systems of 85 trains – comprising more than
500 cars – in Singapore’s mass transit network. A milestone contract not only due to its size,
it was also a powerful illustration of the benefi ts of our hVAC systems, featuring integrated
inverters, thereby providing energy savings, optimized weight and lower life-cycle costs for
the customer. The year also saw two separate hVAC contracts for the Riyadh metro, with a
€15 million order to equip 238 Siemens metro cars and a €5 million order for 138 Alstom units
that will be manufactured at the new production unit in hosur, india.
€15 millionNEW CONTRACT FOR PANTOGRAPHS, HVAC AND COUPLERS IN LIMA
OlIVIeR RaVItPresident Energy & Comfort
“our twin focus is on developing innovative and competitive systems that bring real value to the customer - and building ever-closer relationships with those customers. all of these commitments are shared by the 2015-18 plan. our r&d projects, the development of our industrial footprint and further enhancements in reliability will be key to achieving this.”
HVAC unit assembly leipzig, Germany.
1 Pantograph 2 Energy meter 3 Switch 4 Auxilliary power
converter 5 Heating, Ventilation
and Air Conditioning 6 Driving Aid
and recording 7 CCTV and passenger
information
Pantograph head assembly – Test laboratory – Saint-pierre-des-Corps, France.
1
2
8
5 6
3
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Activity report 2014/15 FAiveley trAnSPort 29FAiveley trAnSPort Activity report 2014/15 28
O n e p O Rt F O l I O
services
Relay valve assembly leipzig, Germany.
upgrades: a valuable toolfor cost efficiencyProviding rail operators with the means to run their trains more cost-effectively is at the very heart of the Services Division’s offer. One way of achieving that is to supply upgrades that offer improved functionality, and can be rapidly installed without affecting surrounding equipment. An example of this approach is Faiveley Transport’s electrically actuated door cylinder, the Electric Cylinder Drive & Lock, which is now entering service. The system has been developed for easy retrofi tting as a straight replacement for pneumatic door mechanisms, providing increased reliability and enhanced safety features. While providing a number of performance benefi ts, the new design enables customers to keep all their existing frames and door leaves. This same commitment to providing customers with value-added solutions also applies to other systems, notably for mid-life overhauls of HVAC installations.
The largest of Faiveley Transport’s fi ve Divisions by sales, Services deals with after-sales
activities that can last for years or even decades. The Division’s success refl ects a number of
factors: a recognition by customers of the quality and value of our services; a large and grow-
ing installed base; a growing trend in Europe towards the contracting out of maintenance;
and the challenge facing operators to maintain increasingly high-technology equipment. The
Division is divided into three business units – Engineering Services, Friction Pairs and Spare
Parts. Engineering Services provide commissioning, training, overhauls, repairs and mainte-
nance. Scheduled maintenance helps to maximize an asset’s availability, potentially over a 30
or 40-year period, and is provided by local service teams backed by Centres of Competence.
Mid-term overhauls of rolling stock are another important area, enabling customers to install
newer, more effi cient equipment. The Division’s R&D team is dedicated to developing retrofi ts
that are non-intrusive, quick and easy to install, and offer customers a short-term payback.
upgrade packages are also available.
controlling costs through computer simulation
Friction Pairs covers the engineering, homologation, manufacture and sales of brake disks
and linings, along with brake pads. The disk activities cover all types of rolling stock and, for
linings, are concentrated on high-performance sintered brake pads. in the spares segment,
Faiveley Transport parts offer a guarantee of quality and safety that is internationally recog-
nized. it is also an offer that continues to evolve. On request, the company can provide com-
puter simulations of a train’s mission profi le – based on the type of train, distances travelled,
type and frequency of braking, number of cars etc. – to propose an optimized, long-term plan
for disk and pad consumption.
a year of records
Services account for 42% of Faiveley Transport’s sales and an exceptional year saw the Divi-
sion achieve record sales of €436 million, a 10.7% increase over the 2013-14 fi gure – itself
a record year. Orders also broke company records. Among the highlights was a €45 million
contract to modernize more than 200 mainline and suburban passenger coaches of Algeria’s
national rail company, the Société Nationale des Transports Ferroviaires (SnTF). The Services
Division also secured its largest ever hVAC overhaul contract, worth €7 million, to upgrade
the hVAC systems of 36 high-speed trains for the Swedish State Railways (SJ). The award
by ABB of Switzerland follows an earlier €10 million order for upgrading the door systems
of the same trains. Along with the sales achievements in 2014-15, the Division also earned
independent recognition of its value to customers by winning the SnCF’s annual Excellence
Trophy award for parts and services.
202COACHES TO BE MODERNIZED FOR ALGERIA’S SNTF
JéRôme SpenCeRPresident Services
“for services, creating value 2018 underlines the fact that we are not just providing parts and maintenance – we are selling enhanced performance to our customers. that means continuing to invest in innovation, quality and cost control, and being proactive in proposing our solutions to the market.”
Hammer head assembly on brake cylinder amiens, France.
1 Installation 2 Commissioning
and training 3 Corrective
maintenance 4 Upgrades 5 Remote diagnostic
and predictive maintenance
6 Reliability and maintainability studies
7 Friction pair 8 Routine maintenance 9 Overhauls
Activity report 2014/15 FAiveley trAnSPort 31FAiveley trAnSPort Activity report 2014/15 30
O n e p O Rt F O l I O
china
With its rapidly growing economy and population, China has become the world’s biggest
single market for mass transit rail systems and locomotives. in the high-speed sector, China
is a larger market than all the other countries combined. no fewer than 36 cities are currently
planning to build a mass transit network with at least 120 kilometers of track, as the coun-
try’s population becomes increasingly urbanized. Tramways, or light Rail Vehicles, are also
emerging as a growth sector as city authorities respond to the challenge of urban mobility. At
the same time, Chinese manufacturers are becoming major exporters in the rail industry, with
markets in South America, South East Asia, the Middle East and Eastern Europe. To reflect
this market’s importance, Faiveley brought together all its different business activities in the
country as a dedicated China Division in May 2014. The Division has some 1,300 employees
in six operating companies, between two subsidiaries based in Beijing and Shanghai, and
four joint ventures in Shanghai, Datong, Shijiazhuang and Qingdao. Together, the various
companies provide brake systems, hVAC, doors, couplers and air compressors.
a global player With a local presence
For certain products, the company’s presence in China is essentially marketing and distribu-
tion. For others, such as hVAC and doors, that presence covers the full product cycle of
R&D, engineering, manufacturing, sales and service. Between these two positions, a grow-
ing proportion of Brakes and Safety equipment is being manufactured locally. Moving for-
ward, increasing the degree of localization across the product range, whether through organic
growth or new partnerships, is a major objective. As elsewhere, sales and marketing can only
be carried out after a product has been homologated by the national rail authority.
in China, that homologation process for brakes, doors and other safety-related components
is extensive, comprising technical specifications, committee reviews and in-service testing
over 600,000 kilometers. Faiveley Transport currently has brake systems for several high-
speed platforms undergoing homologation by China Rail.
a reliable partner for shanghai’s tramWay
During 2014-15, Faiveley Transport tendered for its first ever order for hydraulic brakes in
China, announcing the contract award in April 2015. The equipment will be installed on
30 trams using the first two lines of Shanghai’s new Songjiang District tramway system,
a network that is scheduled to expand to six lines and 118 stations by 2020. Along with
contracts and business integration activities, the Division also used the period to prepare
for “China Quality year”, which began April 1st, 2015. This major new program is devoted
to improving local customer satisfaction by focusing on quality standards in products, pro-
cesses, delivery and services.
Jun hePresident China
“clearly, the watchword for the china division over the 2015-18 period is ‘growth’. our contribution to creating value will be to develop our localized product portfolio and our manufacturing presence in china, and to achieve growth by winning new business and working with new partners. customer satisfaction will be a priority.”
Door leaf glass bonding inspection Shanghai, China.
HVAC components assembly Shanghai, China.
Door operator assembly Shanghai, China.
Glue clearance after door
leaf bonding Shanghai,
China.
high growth in a high-speed market
For the high-speed rail industry, China has moved from being a new entrant to becoming the world’s dominant force in little more than a decade, a remarkable achievement. It has the world’s largest HSR network at 16,000 kilometers and the world’s longest line – the 2,298-kilometer route from Beijing to Guangzhou. It also leads the way in terms of journeys, with more than 100 million trips being made on the Beijing-Shanghai line alone in 2014(1). After a process of technology transfer and joint ventures with European and Japanese train builders, China has now become a major trainset producer. The CRRC Corporation, created by the merger in June 2015 of former rival state-owned companies CNR and CSR, claims to be the largest rolling stock supplier in the world(2). Faiveley Transport is positioning itself for this growing market, with our Brakes & Safety Division having submitted equipment for homologation aboard three Chinese-made trains: the CRH3G, the CRH3A, which is based on the Siemens Velaro, and the CRH2-250, a localized version of the Japanese Shinkansen family.
(1) Source: Xinhua, China’s official news agency.(2) Source: CRRC Corporation statement, June 2, 2015.
€1.6 billionCHINA’S ESTIMATED OE EQUIPMENT MARKET IN 2016-17
FAiveley trAnSPort Activity report 2014/15 32
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Stéphane Rambaud-meaSSOn
Design and layout:
Writing: Trevor Huggins.
Translation: RWM Translation.
3d illustration: Manuel Bortoletti.
Photo credit: Christophe Recoura,
Patrick Sordoillet.
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