OREANDA-NEWS. China's largest rolling stock producer announced in late July it was establishing a joint venture in Hefei, capital of East China's Anhui province, according to the local government.

In cooperation with a local investor, China South Locomotive & Rolling Stock Co.(CSR) will start to build the plant, situated in Xinzhan District and designed to cover a total area of 53 hectares, in September, a government source said, citing some documents.

The railway car giant's move came after the city launched its urban rail program, aiming to build 12 railways and 44-km-long streetcar lines to be equipped with 1,400 light rail vehicles and 50 tramcars, respectively.

Once CSR Hefei is set up, the city will be self-sufficient in rolling stock production, local media reports said on Sunday.

Under related agreements, the plant is expected to go into operation next September.

On top of providing products to Hefei's urban rail system, the company is eyeing other cities of the province as its potential markets. The province plans to build 1,833-km-long urban rail lines, with roughly 3,600 cars in demand.

"We are paying close attention to the urban rail projects that are under way or about to kick off in Anhui's cities like Wuhu, Ma'anshan and Huangshan," said a CSR source.