SKF AB (Sweden; Stockholm: 5251R9N7) announced it has won a contract to supply China's state-run China South Rolling Stock & Railway, Zhuzhou Electric Locomotive Company / Gofront Group (website and website) with €14 million (USD $20.5 million) worth of locomotive axlebox and drive system bearings.

Across the contracted 500 mainline locomotives, the contract amounts to more than €28,000 ($40,000) per unit.

China's Ministry of Railways (MoR) was also involved in the bearing selection and award process.

First new unit ZELC heavy traction locomotive

SKF's long experience with European electric rail applications was apparently key to winning the contract; China's next-generation motive power more closely resembles successful European designs than China's traditional approaches to DC and AC/DC traction efforts.

For example, the contracted application SKF's bearings are going into 6-axle 7200kW AC drive traction units -- the highest-power single-axle drive units in the world -- which are otherwise sourced 90% from China's domestic industries. Those domestic sources include a long-standing design and manufacturing partnership with Siemens AG (Germany) for electronic control systems.

Although ZELC manufactures locomotives and rolling stock not only for China but also for export markets across Asia and eastern Europe -- Iran and Uzbekistan are key customers -- this contract puts SKF axlebox and drive system bearings only into China's domestic market applications. ZELC has a 60% market share in China.

Founded in 1936, state-run CSR ZELC is China's largest developer and manufacturer of electric rail equipment. The company's primary owner is China South Locomotive & Rolling Stock Corporation Ltd. One of China's largest manufacturing operations; while China South has more than 80,000 workers across ten provinces. Gofront/ZELC has more than 10,000 workers and its facilities cover more than 2.3 square kilometers. ZELW's rolling stock primarily targets high-speed applications -- passenger and freight locomotives, urban and suburban passenger rail. The company is ISO9000, ISO14000, and OHSMS18000 certified.