Shaanxi Aokai Cable Co, which used substandard cables for the subway system in Xi'an, Northwest China's Shaanxi Province, reportedly won bids and signed contracts before starting production.
Aokai Cable reached contracts worth 13.6 million yuan (1.97 million U.S. dollars) with Beijing MTR Construction Administration Corp and the Electrical Service Engineering Co of China Railway First Group Co in 2013, but it only began production in August 2014, domestic news portal thepaper.cn reported on Thursday, citing authoritative documents.
The deals included a 1.85 million yuan circuit change project on the XCSD-2 phase of the Xi'an-Chengdu rail line, which was agreed on with the Electrical Service Engineering Co, according to the report.
In addition, Aokai Cable signed an agreement with the abovementioned companies for the Kunming railway transformation project in December 2014, which was valued at 2.7 million yuan, it said.
On Monday, Jin Qun, deputy director of the National Wire and Cable Products Quality Supervision and Test Center, announced at a press conference in Xi'an that tests had revealed the cables on the city's Subway Line 3 were substandard.
On Thursday, the bureau ordered related departments to inspect all the electric cables supplied by Aokai Cable, and it decided to conduct a special investigation of domestic cable companies from the same day.
An executive of the company knelt and apologized during a TV interview on Tuesday.
(Source: Global Times)
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