May 25, 2007 -- Bombardier Transportation and Transmashholding, Russia’s leading rail technology manufacturer, signed an agreement today creating two joint ventures: an engineering joint venture to develop advanced propulsion technology and technical solutions for railway equipment plus a production joint venture to manufacture a family of traction converters based on Bombardier’s proven MITRAC propulsion technology. The agreement was signed in the Russian city of Sochi in the presence of the Russian Railways' President, Vladimir Yakunin.

The engineering centre will be located in Moscow and serve customers from Russia and abroad. The centre is expected to be operational in Autumn 2007. Both companies plan to offer out of this center their capabilities for development of rolling stock and related equipment. The manufacturing joint venture will produce the first traction converter family at the Transmashholding’s plant in the city of Novocherkassk in Russia. In its initial phase, the joint venture will manufacture advanced converters required for a new generation of locomotives with asynchronous propulsion. The propulsion equipment will be used for locomotives of the Russian Railways and for other customers, also outside of Russia. Production of at least 600 converters is targeted by 2012.

For that purpose, Russian workers will be trained by Bombardier in Europe. European experts will also support the production start-up to ensure that the new production site will be designed according to the latest European standards. Both engineering and production joint ventures will be owned equally by Bombardier Transportation and Transmashholding. The two partners will together invest a total of EUR 12.5 million ($ 16.9 million US) in both joint ventures. With an unparalleled market demand for up to 7,500 new locomotives in Russia by 2015, these joint ventures ensure that the best technology and engineering skill will be in place to help meet that need for the long term.

Bombardier Transportation’s long-standing relationship with Russia and the CIS began more than 50 years ago through Deutsche Waggonbau AG (DWA), acquired by Bombardier in the late 1990s. From 1948 to 1995, DWA manufactured one out of every two passenger rail coaches made for the Soviet Union and later Russia. In the rail transportation sector, Bombardier has successful long-term relationships and joint ventures with Russian manufacturing and engineering partners, including JSC Russian Railways and Transmashholding as well as a Moscow-based joint venture in signaling.

Source: Bombardier