CAF Power & Automation has concluded a collaboration agreement with Medel Elektronik, a Turkish company that supplies on-board electronic equipment, to approach the market in this country according to the Company’s requirements, as this country harvests a highly significant potential for rolling stock demand over the coming years.
As a highlight of this new collaboration, CAF Power took the opportunity to exhibit a tram traction converter with production localised in Turkey on the Medel Elektronik stand at the last Eurasia Rail fair, held on March 2-4 at the Expo Center in Istanbul.
For CAF Power “the railway industry is presently imposing a clear requirement for localised production. It is increasingly common for the rolling stock tenders issued by operators to specify a certain fraction of both rolling stock and on-board systems that must be unconditionally localised. This means that a part of the purchases of materials to manufacture the systems, and the assembly of the materials as well, must be conducted in the country that is promoting the project”.
The location in the Turkish market
This condition, says, “leads to companies in the railway industry to implement solutions to meet these requirements either by opening production sites in the specific country or by partnering agreements with local players”. In this way is the agreement sealed in Turkey.
Thus, CAF P&A can now count on Medel Elektronik as the Company’s strategic partner to meet the demand in the Turkish railway market, where localised production it is estimated to eventually reach up to 60%.
CAF Power intends to leverage this alliance to gain foothold in the Turkish market, while Medel Elektronik will benefit from technology transfers in the railway control and power electronic field.