Roundup: China's high-speed rail maker launches operation in U.S.

China's largest high-speed rail car maker launched a assembly line in Springfield in the northeastern U.S. state of Massachusetts on Thursday, which is expected to create hundreds of local jobs.

China Railway Rolling Stock Corporation (CRRC) will assemble 284 subway cars in Springfield to replace the aging fleets of red and orange lines which connect Cambridge to downtown Boston by 2023.

The 40 acre (16 hectare) industrial parcel including a former Westinghouse facility that once housed the world's first mass-produced auto plant is ready for construction.

Massachusetts Governor Charlie Baker and CRRC Vice President Yu Weiping, among hundreds of government and business leaders, shovelled soil for the facility in a ground breaking ceremony on Thursday.

"It's a big day for Springfield. I believe this project has the potential to be a real milestone for Springfield and West Massachusetts," Governor Baker said at the ground-breaking ceremony.

Some 90 miles (145 km) southwest of Boston, Springfield, where the National Hockey League is headquartered, was a manufacturing hub in New England, but it fell from grace in the 1970s' as many companies moved to the south and overseas.

"This project brings manufacturing back to the community as Springfield has rich history in making things," Baker said.

Since it is the Massachusetts state that pays for the cars without spending a dime of the federal government, it allows the state to dictate a "make it in Massachusetts" requirement. It will bring 150 manufacturing jobs and 100 construction jobs.

"All the economic development projects are about jobs, jobs and more jobs! The largest railway company in the world is going to create 150 good paying jobs here!" Domenic Sarno, mayor of Springfield, said at the ceremony.

Tom Loper, a senior staff of Bay Path University in Massachusetts, were digging news about hiring at the ceremony, as he seeks potential positions in the factory for his students.

"I'm here to know what exactly the manufacturer is looking for so we can make sure that our curriculum is in line with what it needs," Loper said.

The Buy American Act requires 60 percent of the parts coming from the U.S. in government procurement. The contract also requires the CRRC to take care of parts suppliers with minority groups and women employees.

C&D Electronics, a local electrical service provider, has 60 percent of its employees that are women and minority groups.

"We are very excited. We think we are able to grow our footprint along with the Chinese rail company growing their footprint here in New England," Mark Cutting, president of the company, said.

The deal also ushered in a new chapter for Chinese train makers whose overseas push backed by Premier Li Keqiang has been mostly limited to developing markets.

"It's a symbolic deal for the CRRC, since the U.S. market is very hard to break into," Yu said.

Yu admitted building a factory in the U.S. is even more difficult than selling subway cars.

"We have to train American workers, take care of the suppliers with minority groups and women employees and reach out to the local community.The business and cultural environment are vastly different from other markets and we do have some learning curves," he said.

"But it is our first U.S. order, and we will do everything we can to make it good," he added.

The CRRC aims at high-speed railway contracts in the U.S. and it has shown enormous interest in projects from California to Texas.

"It is a big pie and we sure want a piece," Yu said. Endi