Samsung SDS strikes $20 million deal in China

By Kim Yoo-chul

Samsung SDS said Tuesday that it has clinched a 23 billion won automatic fare collection (AFC) deal in China.

SDS will provide its AFC system on subway line 2 in the city of Chengdu, it said in a statement.

AFC is a system for processing, purchasing and checking the collection of tickets and related statistical work through information systems.

SDS expects the deal will pave the way for the company to win more orders in China as well as other countries.

``Samsung SDS has beaten 10 other major competitors for the project. Despite a higher order price compared to our rivals, SDS made the significant advance through its recognized proven technical power,’’ said a company spokeswoman, Lee Eun-young.

The line with 32 stations will open by the end of 2016. Under the agreement, SDS will handle design, development, production and delivery systems, in addition to the development of the AFC system and even the equipment for the stations, according to the statement.

Since 2002, SDS has been handling AFC projects in other big Chinese cities of Guangzhou, Beijing, Wuhan and Tianjin, it said.

The emerging AFC market in China has seen fierce price competition from local bidders, triggering international bidders such as Thales, Omron and Nippon Signal of Japan to withdraw from the competition, according to SDS officials.

``With the win, SDS is expected to see further business chances for more profitable projects including parking management systems and U-city businesses,’’ Lee said.

SDS previously won a $20 million AFC deal for the Delhi subway in India and sealed a $15 million project for the Bangalore subway.

``We are aiming to reap 5 trillion won in total sales by the end of next year and sales will be raised to 9 trillion won by 2015,’’ said the spokesman, adding the subsidiary is set to further boost its overseas sales.