MILAN, July 16 (Reuters) - Italian rail technology group Ansaldo STS SpA agreed to provide patented technology to a Chinese and Taiwanese venture as it seeks business in the fast-growing Chinese tramway market.
Ansaldo said on Monday it had agreed to licence technology for catenary-free power supply - which feeds power to a tram without using cables, thus eliminating traffic barriers - to a venture of China’s CNR Dalian and Taiwan’s General Resources Co.
“China’s tramway market is expected to grow strongly on the back of increasing demand for transport and the considerable investments planned by the Chinese government,” the Italian company said in a statement.
Shares in Ansaldo STS, which parent company Finmeccanica SpA could sell as part of a restructuring plan, rose after the deal was announced. By 0900 GMT, the stock was up 2.2 percent at 5.53 euros, while the Italian blue chip index was down 0.3 percent. (Reporting by Danilo Masoni; Editing by David Holmes)