TMH and Tognum to Set up Joint Diesel Engine Production in Kolomna
JSC Transmashholding, the biggest Russian transport engineering company, and Tognum Group, a leading manufacturer of diesel engines, complex propulsion systems in the world market 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, Chairman of the Executive Board of Tognum.
The new plant is expected to produce up to maximum 1.000 engines per year for rail, mining and on-site power generation applications. It is intended to launch assembling, testing, painting, as well as aftersales service. Furthermore, Transmashholding and Tognum are to set up a joint engineering center for diesel engine development. Joint venture business will be run by a specially established legal party, MTU Transmashholding Diesel Technologies.
Investments in the project are expected to reach around 80 million euros.
The partner plant to finalize design documents for the new production facility by November 1, 2013 and kick off production by December 2015. “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” , stated A. Bokarev.
“This Joint Venture is an important and logical milestone in development of our long-term relationships with Transmashholding and the consequent joint decision to further develop CIS market with modern diesel technologies”, Joachim Coers said.
Earlier on June 17, 2011, the parties entered into a partnership agreement stipulating their rights and obligations with regard to the current project.
Source: TMH Press Centre