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Midas Holdings JV secures 1.73b yuan metro train contract

MIDAS Holdings' joint venture company, Nanjing SR Puzhen Rail Transport Co (NPRT), together with a consortium partner, has secured a 1.73 billion yuan (S$374 million) metro train contract.

The contract is awarded by Shanghai Rail Transit Line 13 Development Co, for the Shanghai Metro Line 13 Phases 2 and 3, with delivery scheduled between 2016 and 2017.

Midas Holdings CEO and executive director, Patrick Chew, said: "We are pleased that NPRT continues to be a beneficiary of China's growing railway industry. The continuing development and expansion of China's passenger rail network brings about demand for metro train cars."

Mainboard-listed Midas Holdings, a manufacturer of aluminium alloy extrusion products for the passenger rail transportation sector in China, has a 32.5 per cent stake in Nanjing SR Puzhen Rail Transport Co, which manufactures metro trains, bogies and their related parts.

The contract is expected to contribute positively to Midas Holdings' financial performance for the 2016 and 2017 financial years.

On Thursday, Midas Holdings' counter closed up 3.03 per cent at S$0.34.