Russian Railways orders locomotives with Siemens technology

14 June 2010

New joint venture with Sinara to supply RZD with 221 locomotives

Russian Railways (RZD) today ordered a total of 221 locomotives from “OOO Ural Locomotives”, a Siemens joint venture. The new company which was formed last week as a joint venture with the Russian freight locomotive manufacturer OJSC Sinara Transport Machines (Sinara) will build modern electric locomotives in Verkhnyaya Pyshma near Yekaterinburg. Siemens has a 49 percent stake in the joint venture. The contract was awarded at the international rail business forum “1520 Strategic Partnership” in Sochi on Russia’s Black Sea coast. The parties have agreed not to disclose the order volume. Furthermore Siemens and RZD have agreed on expanding their partnership in the long term. A memorandum of understanding between both parties makes provision for the future production of regional trains with Siemens technology in Russia.

The contract signed today calls for the supply of 221 electric freight locomotives, which will be built by "OOO Ural Locomotives" as of 2011. Siemens is set to invest over EUR 100 million in setting up a modern freight locomotive production, thereby creating around 800 jobs for highly qualified personnel. Siemens' role in the joint venture will be to supply the electric traction components, which will be manufactured in St. Petersburg. The company will also be investing a further EUR 20 million in expanding production facilities for electric traction components in St. Petersburg. At the same time, work has begun on setting up an engineering center for rolling stock in Moscow, which will create around 200 jobs at Siemens in Russia.

As Division CEO Hans-Jörg Grundmann stated, “Russia is a strategic growth market for rail technology. Our all-around portfolio for modern and ecofriendly transportation technology positions us perfectly in the rolling stock and rail infrastructure markets. We also wish to remain a dependable partner for RZD in future and will continue to place great importance on local manufacture in Russia.”

The Siemens Industry Sector (Erlangen, Germany) is the worldwide leading supplier of environmentally friendly production, transportation, building and lighting technologies. With integrated automation technologies and comprehensive industry-specific solutions, Siemens increases the productivity, efficiency and flexibility of its customers in the fields of industry and infrastructure. The Sector consists of six divisions: Building Technologies, Drive Technologies, Industry Automation, Industry Solutions, Mobility and Osram. With around 207,000 employees worldwide (September 30), Siemens Industry achieved in fiscal year 2009 total sales of approximately €35 billion. www.siemens.com/industry

The Siemens Mobility Division (Erlangen) is the internationally leading provider of transportation and logistics solutions. With “Complete mobility”, the Division is focused on networking the various modes of transportation in order to ensure the efficient and environmentally compatible transport of people and goods. “Complete mobility” targets the goal of sustainability and combines the company’s competence in operations control systems for railways and traffic control systems for roadways together with solutions for airport and postal logistics, railway electrification, rolling stock for mass transit, regional and mainline services, as well as turnkey systems and forward-looking service concepts. With around 25,000 employees worldwide (September 30), Siemens Mobility posted sales of €6.4 billion in fiscal year 2009. www.siemens.com/mobility