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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.

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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.