OREANDA-NEWS. Under the agreement signed on 31 March in Paris in the presence of Russian Railways (RZD) President Vladimir Yakunin, the French company has acquired 25% plus 1 share in Transmashholding’s parent company, reported the press-centre of Russian Railways.

Alstom Transport has committed to provide Transmashholding with technological and methodological support in modernizing production processes at its plants and in developing a new generation of railway equipment for the Russian market.

Modernization plans have already been drawn up for three TMH plants – the Bryansk machine factor, the Demikhov machine factory and Centrosvarmash in the city of Tver. Similar programs will be implemented at TMH’s nine other plants.

Transmashholding will manufacture new products designed for the RF and CIS markets in Russia with a local content of 75-80%. The first joint development will be an electric locomotive built on a base platform, which is being created at the Novocherkassk electric locomotive plant. The first unit is to be supplied in mid-2010. The partners also intend to continue working together on the manufacture of double-deck carriages with seats and sleeping berths, providing a high level of passenger service (including a bar, restaurant and shower cabins); these could be put into production in Tver region in the coming years.

“By working with Alstom we are improving the quality of rail transportation in the Russian Federation, both for passengers and freight. This is in line with the strategic objectives of the Russian Government’s railway reform program now being implemented by RZD management. We regard the signing of this contact as evidence that Russia, France and Europe as a whole aim to continue a policy of integration, a policy of building close and mutually beneficial economic ties”, commented RZD President Vladimir Yakunin.

ZAO Transmashholding was incorporated in 2002. In December 2007, RZD acquired a blocking stake in Transmashholding’s parent company (25% plus one share).

Transmashholding is the largest transport engineering company in Russia and the world leader in railway engineering by physical output. It is also the biggest supplier of rolling stock to Russian Railways.