Tognum Establishes Agreement with JSC Transmashholding to Produce Diesel Engines in Russia

JSC Transmashholding, one of Russia's biggest rolling stock manufacturers, and propulsion and power solution specialist Tognum AG have reached an agreement to set up a joint venture company for diesel engine production in the city of Kolomna, near Moscow. A memorandum to that effect was signed at the International Economic Forum in St. Petersburg by Andrey Bokarev, President of Transmashholding, and Joachim Coers, Tognum CEO.

The new plant is expected to produce up to a maximum of 1,000 engines per year for rail, mining and on-site power generation applications. Plans for the new facility foresee the assembling, testing and finishing of Tognum’s MTU Series 4000 diesel engines and gensets, as well as sales and aftersales service. Furthermore, Transmashholding and Tognum are to set up a joint engineering center for diesel engine development. All operative business is concentrated in the joint company named MTU Transmashholding Diesel Technologies based in Kolomna.

Investment in the project is expected to reach around 80 million euros. Plans for the design of the new production plant are to be completed by November 1, 2013. Production is to kick off by December 2015.

“This Joint Venture is an important and logical milestone in the development of our long-term relationship with Transmashholding and the consequent joint decision to further develop the CIS-market with modern diesel technologies,” Coers says.

“State-of-the-art technical solutions and high-tech standards build up a foundation of our future enterprise, all this will help us to hold a solid market position, as well as provide our consumers in Russia and abroad with reliable, quality and efficient engines,” states Bokarev.

On June 17, 2011, the parties entered into a partnership agreement stipulating their rights and obligations with regard to the current project.