Hitachi and China’s Insigma table bids for Finmeccanica’s train-making unit

Japanese multinational conglomerate Hitachi Ltd and China's Insigma group Co Ltd have tabled bids for the train-making and rail signal assets of Italian aerospace and defence group Finmeccanica.

Finmeccanica had in June put for sale its loss-making AnsaldoBreda unit and its 40-per cent stake in rail signalling company Ansdaldo STS and hired Italian investment bank Mediobanca and Swiss financial services company UBS to assist in the sale, which could fetch around €1.4 billion ($1.7 billion).

AnsaldoBreda was founded in 2001 by the merger of "Ansaldo Trasporti", a specialist in activation of vehicles and in the electrical equipment on board, and "Breda Costruzioni  Ferroviarie", a world leader in the field of railway and tramway materials.

It designs and manufactures the mechanical parts (car, bogie) of trains, metros and streetcars, including designing and constructing traction and auxiliary electrical equipment like converters, engines, and control systems.

AnsaldoBreda has plants in Pistoia, Napoli, Reggio Calabria and Palermo, and employs around 2,300 people.

The company reported a net loss of €524.6 million last year, and in the first nine months, AnsaldoBreda posted revenues of €484 million, while operating losses shrank from €94 million to €34 million.