CHONGQING (CQNEWS) Wulong County recently indicated that a Strategic Supply Agreement has been reached between Chongqing Tongyao Casting & Forging Co., Ltd. and Strato, Inc for a term of ten years and with a value of USD one billion. The successful entrance of the company into the American market marks a significant step forward for Wulong designed train parts, creating a new business model of ‘Wulong R&D, American marketing’.

Tongyao is a ‘casting production base of Chongqing’ authorized by the Economic and Information Commission of Chongqing. It is tasked with casting parts for engineering machineries, metals, building materials, power plants, ships and trains.

Common parts the company manufactures for trains, like draw gears, side frames and frame hooks are ordered by American clients. The ten-year Strategic Supply Agreement will come into effect from 2015 and has a value of USD one billion per year. Based on this initial contract, the supply will be increased by 20% year on year. Clients from America are expected to places their first train part order of 40,000,000 yuan by the end of this year. (Translated by Kang Zhili, Fathom Language Limited)