MIDAS Holdings said yesterday that its associated company Nanjing SR Puzhen Rail Transport Co (NPRT) has signed a deal to carry out rail-car repair and maintenance in China through a joint venture with Nanjing Metro Industrial Group Co (NMIG).

The 20 million yuan (S$4 million) joint venture - NPRT will hold a 55 per cent stake and NMIG the remaining 45 per cent - will repair, maintain and carry out other servicing work on metro train cars.

The two companies will leverage on each other's competitive strengths to build the venture's presence and market share in the metro train car market.

'This is an exciting opportunity and strategic move for NPRT,' said Midas CEO Patrick Chew. 'Since NPRT started commercial operation in January 2007, it has built up a strong track record of projects, establishing its market position as one of the key train car manufacturers in (China). Its downstream expansion into repair and maintenance services brings it one step closer to becoming an integrated player in the rail transport value chain.

'As a group, we will continue to seek business opportunities in the rail transport market that can broaden our services and entrench our leadership position in the industry.'

Midas makes aluminium alloy extrusion products and polyethylene pipes, primarily for the transport and infrastructure sectors in China. It owns 32.5 per cent of NPRT, which develops, manufactures and sells metro trains, bogies and parts.

NPRT has won six contracts since its inception in January last year.