Wednesday, May 23, 2012

GE signs MOU for Kazakhstan diesel plant

Written by 

Erie, Pa.-based GE Transportation on Wednesday said it has signed a Memorandum of Understanding with TransMashDiesel and JSC National Company Kazakhstan Temir Zholy (KTZ) to establish a diesel engine manufacturing plant in Astana, Kazakhstan.

The agreement aims to form a joint venture company to 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, comprised of nations formerly part of the Soviet Union.

GE Transportation President Lorenzo Simonelli said, “We are excited about the prospect of expanding our global manufacturing footprint and to supplying our leading Evolution Series diesel engines to customers in Russia, Kazakhstan, and other countries. We are looking forward to advancing sustainable infrastructure growth in the rail, marine and stationary power industries across the CIS region.”

The joint venture partners plan to invest approximately $90 million to build a new, approximately 97,000 square feet facility in Astana, Kazakhstan. The new JV partnership 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 2013 with the first diesel engines scheduled to roll off its assembly lines by early 2014, GE said.

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.

The Evolution Series diesel electric locomotive is equipped with a 12-cylinder diesel engine that GE says produces the same 4,400 horsepower as its 16-cylinder predecessor.

GE Transportation is a subsidiary of Fairfield, Conn.-based General Electric Co.