Japan Rail Firms Laying Tracks Toward European Markets

BERLIN - Japanese railway-related manufacturers are rushing to cultivate foreign markets by establishing sales outposts in Europe and forming manufacturing tie-ups in China.

French and German manufacturers pitch their cutting-edge trains at a rail car fair in Berlin Tuesday.

Global demand for railway-related equipment is growing, but competition is intensifying, particularly with European rivals.

Toshiba Corp, which makes motors for railroad cars, will staff a U.K. subsidiary with dedicated marketing personnel next month.

And Mitsubishi Electric Corp. has established a U.K. sales force to promote its rail car information systems and air conditioning equipment. The company also plans to add maintenance engineers for air conditioning systems.

Toshiba and Mitsubishi Electric will use their U.K. operations to cover Europe. Toshiba aims to double its railway-related sales to more than 200 billion yen by 2015, while Mitsubishi Electric seeks to lift its by 50% to 230 billion yen over the same period.

Kinki Sharyo Co. will try to crack the U.K. market, where German and French rail car manufacturers have a relatively small presence, by bidding on two contracts to supply light rail vehicles. The bids are expected to take place as early as this fiscal year.

Kinki Sharyo has already signed collaboration agreements with local railway consulting and engineering firms.

Nabtesco Corp. has developed a door operating system tailored to the European market and will launch sales this fall. In China, the company has decided to establish a joint manufacturing venture with a local firm by the end of March.

Fuji Electric Holdings Co, which makes drive equipment and door systems, will enter China by licensing technology to local firms. It will also place sales personnel focusing on the railway business in the U.S. by the end of March.

Kyosan Electric Manufacturing Co has developed a wireless signal control system, a mainstream technology overseas, for sale mainly in emerging nations.

The Japanese market for rail cars is not expected to expand beyond 200-300 billion yen a year, but overseas growth has been steady.

Major Japanese rail car manufacturers Hitachi Ltd and Kawasaki Heavy Industries Ltd. are also pushing global expansions.