GE, KTZ, Transmashdiesel Create JV for Production of Diesel Engines in Kazakhstan
GE Transportation, a leading global provider of rail, mining and transportation-related equipment, has signed an agreement with Limited Liability Company «Transmashdiesel» and JSC National Company Kazakhstan Temir Zholy's (KTZ) subsidiary JSC Remlokomotiv to create a joint venture company to produce diesel engines in Astana, Kazakhstan. The formation of the JV is subject to various conditions precedent, including government and regulatory approvals.
The JV will produce approximately 400 Evolution Series diesel engines a year to serve rail, marine and stationary power customers in the Commonwealth of Independent States (CIS) region.
GE's Evolution Series diesel engine is the company's most successful and technologically advanced, fuel efficient, and low emissions engine to date. GE has produced over 5,000 Evolution Series diesel engines since introducing it in 2005. It is also one of GE's most prominent “Ecomagination” products. “Ecomagination” is GE's initiative to help customers meet demand for more energy-efficient products while generating profitable growth for the company.
The Evolution Series locomotive represents a $400 million investment by GE over eight years. The innovative diesel electric locomotive is equipped with a 12-cylinder diesel engine that produces the same 4,400 horsepower as its 16-cylinder predecessor.
The joint venture partners plan to invest approximately $90 million to build a new, approximately 97,000 square foot diesel engine facility in Astana, Kazakhstan.
The new JV intends to manufacture, sell, service, and provide spare parts for Evolution Series diesel engines. The plant is scheduled to be operational by the end of 2014 KTZ's wholly owned subsidiary JSC Lokomotiv Kurastyru Zauyty (LKZ) already operates a 460,000 square foot locomotive assembly facility in Astana, Kazakhstan's capital and second largest city. The plant can assemble approximately 100 Evolution Series locomotives a year.
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