GE has entered into an agreement with Russian manufacturer Transmashholding (TMH) to set up a new 50/50 joint venture.
The partnership agreement, which remains subject to regulatory approvals, will localise production of GE Evolution Series diesel engines from a new facility in Penza, Russia, to support the manufacture of locomotives for Russian Railways (RZD).
More than US $70 million will be invested in the new factory, equipment and training, GE said.
Andrey Bokarev, president of Transmashholding, said: “Transmashholding has high expectations for the future of this joint project with GE to develop and produce state-of-the-art diesel engines.
“It will significantly expand our expertise and the range of products we offer to the market. In combination with our existing solutions, we will be able to offer engines to our customers that precisely meet their needs. It’s particularly noteworthy that the new venture will produce engines not only for the Russian market, but also for export.”
The new facility will initially produce up to 250 engines a year.
