Thursday, May 24, 2012 -
U.S. firm GE Transportation said Thursday it signed a three-way tentative agreement to build a diesel engine plant in Kazakhstan.
The joint venture partners envisage spending $90 million to construct the 97,000 square foot diesel engine factory in Astana, the Kazakh capital.
The project will produce 400 Evolution Series diesel engines annually.
They will be sold to rail, marine, and stationary power companies in Russia, Kazakhstan, and to other Commonwealth of Independent States (CIS).
“We are looking forward to advancing sustainable infrastructure growth in the rail, marine and stationary power industries across the CIS region,” GE Transportation President Lorenzo Simonelli said.
The Evolution Series engine is one of GE’s most technologically advanced fuel efficient, low emission engines.
GE Transportation will partner with Kazakh national railway company Kazakhstan Temir Zholy (KTZ) and Russia’s TransMashDiesel.
The factory is expected to produce its first diesel engines in early 2014.
GE Transportation is the leading maker of diesel-electric locomotives for both passengers and freight in the United States.
A factory in Astana is already in operation assembling around 100 Evolution Series locomotives per year.
Earlier this month, KTZ has announced plans to buy 19,000 freight locomotives within a plan to upgrade and expand its railway network.