BT Signaling BV Buys Stake in Russian Railways Subsidiary
OREANDA-NEWS. December 16, 2010. Russian Railways and BT Signaling BV signed an agreement on BT Signaling BV’s purchase of up to 50% minus 2 ordinary shares in United Electrical Engineering Plants (Elteza) from Russian Railways. The agreement was signed on behalf of Russian Railways by company president Vladimir Yakunin, and on behalf of BT Signaling BV by Pierre Beaudoin, CEO of Bombardier Inc. Speaking at the signing ceremony, Russian Railways President Vladimir Yakunin said: “Russian Railways has enjoyed long and productive work with Bombardier Transportation, reported the press-centre of Russian Railways.
For Russian Railways, it’s crucially important to attract a global-level company to create a joint venture. We fully appreciate that the market of Elteza’s products is an intense, highly competitive environment. Bombardier won the tender fairly. We, in turn, will fulfill all our obligations under the agreement.” According to the agreement, Bombardier Transportation will offer Elteza licenses, and also support the handover and adaptation of technology necessary for the production of modern railway signalling, interlocking and blocking systems.
Working with Bombardier, a global leader in rail technology, as a partner in the design, production and installation of railway signaling, interlocking and blocking systems is in line with Elteza’s strategic development goals, and will enable Russian Railways to improve the efficiency and safety of railway transport through the use of modern high-tech telemechanics and automatics systems in Russian production. The sale of the stake in Elteza is expected to be finalized in the first quarter of 2011, if all conditions set out in the agreement are met, including the receipt of approval from state authorities.
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Elteza, a 100% subsidiary of Russian Railways, was established in April 2005. The company focuses on the design, development and production of automatics, telemechanics and communications equipment for the operational needs of the railway. Elteza’s plants produce approximately 6000 products. About 94% of total production is sold to Russian Railways.
Elteza comprises eight industrial facilities including electrical engineering factories in Armavir, Gatchina, Yelets, Kamyshlov, Losiny Ostrov, and St Petersburg, a casting and mechanical plant in Volgograd, and an electric machine-building plant in St Petersburg.
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