China CNR says to recall 54 bullet trains due to safety concerns

China CNR Corp Ltd , the nation's No.2 train maker, will recall 54 bullet trains used on the new Beijing-Shanghai high-speed rail line for safety reasons, the firm said on Friday.

The recall of the CRH380BL-series bullet trains will not affect sales contracts with its customers, although it will face undetermined costs as part of the recall, CSR said in a statement with the Shanghai Stock Exchange.

"The company predicts that costs associated with testing and overhaul will definitely have an impact on operations this year," the statement said.

The recall comes two days after CNR said its subsidiary, Changchun Railway Vehicles Co., had been ordered by the Ministry of Railways to halt delivery of the CRH380BL after signalling faults in the trains' automatic safety systems were found to cause delays.

China's flagship high-speed rail link between Beijing and Shanghai has suffered several delays due to power cuts and other technical reasons since it was launched in late June.

The country also plans to suspend new project approvals and to launch safety checks on existing equipments to address growing public fury following a deadly crash between two high-speed trains last month.

Separately, the China Securities Journal cited a spokesman from China South Locomotive and Rolling Stock Corp Ltd (CSR) as saying the firm's order book remains full until the third quarter of next year and has not been affected by the accident.

China South Locomotive had built both of the trains involved in the crash last month, one of which was manufactured as part of a joint venture with Canada's Bombardier.