China’s biggest maker of railway equipment, CRRC Corp., is in talks for a potential investment in downtown’s Hyperloop Technologies Inc., reports Bloomberg.
The companies are discussing opportunities to work together, including collaboration and investment, according to sources close to the talks, which were not authorized to talk on the record.
CRRC Corp. is a state-owned train manufacturer formed last year by the merger of two other manufacturers. At the time of the merger, the company had a market capitalization of $130 billion. The Chinese government hopes to use economies of scale and state-backed financing to help the company compete with the likes of Germany’s Siemens AG, France’s Alstom SA and Canada’s Bombardier.
Hyperloop transportation was popularized by SpaceX founder and Chief Executive Elon Musk in a 2013 white paper. It is a vacuum tube transportation system some believe could whisk passengers along great distances at speeds far faster than airliners or bullet trains. Hyperloop Technologies Inc. this month broke ground on a test track in North Las Vegas.
However, despite the claimed potential for the hyperloop concept, Hyperloop Technologies Inc. appears to have fallen behind on its fundraising schedule. The company announced it has raised $37 million of its $80 million Series B round in December and expected to close the rest the round by the end of last year.
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