OREANDA-NEWS. May 31, 2007.  Agreements signed guarantee necessary training and cut of the edge technologies in tractive equipment on the Russian market

Transmashholding, the largest Russian railway equipment producer and Bombardier Transportation, the world market leader in development and production of rolling stock have signed a number of agreements for creation of two joint ventures in Russia. The agreements were signed in Sochi in the presence of Vladimir Yakunin, president of Russian Railways.

The agreements imply the establishment of an Engineering centre for development of new up-to-date components, equipment, technical and technological solutions for railway equipment and creation of a joint venture for production of traction converters based on the proven Bombardier MITRAC* technology.

The joint Engineering centre to be located in Moscow will be working for Russian and foreign customers. It is planned to be launched in Autumn 2007. The two companies, besides, are planning to offer out of the Moscow center their capabilities for development of rolling stock and related equipment.

The joint venture for production of traction converters will be set on the Novocherkassk Electric Locomotive Plant (NEVZ, a Transmashholding-integrated company) production facilities. The JV production is to be used for the new generation electric locomotives with with asynchronous propulsion. The converters are to be used both for the locomotives produced for JSC RZD and other customers including those from abroad. The minimum planned number of produced items by the year of 2012 is 600.

Transmashholding and Bombardier Transportation will have equal shares of the Engineering centre and joint venture.

The Russian staff of the joint venture will undergo training at Bombardier Transportation companies in Europe. European experts will also support the production start-up in Novocherkassk to ensure that the new production site will be designed according to the latest European standards.

The investments into the Engineering centre and joint venture will total 0.5 bln roubles.

The parties concerned believe that the joint ventures are very promising since the sole Russian market demand in new electric locomotives is immense and is estimated to total 7,500 units by the year of 2015.

For the first time in the Russian transport engineering history our foreign partners and we are creating an up-to-date technologically independent engineering centre, which is based on our unified experience, knowledge, and technologies and capable of development of new high performance products not only for the Russian, but also for foreign markets, said Dmitry Komissarov, Chairman of the CJSC Transmashholding Board of Directors.

During the signing ceremony Bombardier Transportation Chief Operating Officer Wolfgang Tцlsner said: This agreement demonstrates the firm commitment of both parties to develop a long-term industrial partnership that addresses the fast growing Russian market. This industrial base will also be used to jointly enter new markets. We are very proud to take part in the future of Russia’s rail industry with Transmashholding and to offer our innovative products and state-of-the-art technology to our partner.