GE and Transmashholding (TMH) signed a strategic business plan providing for the launch of a 50-50 joint venture, pending final regulatory approvals, to localize manufacturing of advanced GEVO diesel engines at a new facility in Penza, Russia. The project is aimed at addressing the locomotive needs of Russian Railways, as well as providing engine solutions for marine vessels and distributed power applications.
The companies plan to invest over USD 70 million in the plant and related equipment, training, and technology. The GEVO engines to be produced at the new facility will incorporate advanced GE technologies to lower life-cycle operating costs, while increasing efficiency, reliability, ease of maintenance, and time between overhauls. The agreement envisages initial production of up to 250 engines per year in the 2,900–4,700 kW class, with the potential to expand the venture’s production capacity and product portfolio according to future market demand. The companies also agreed that a priority goal for the joint venture will be identifying export opportunities for its products.
”Transmashholding has high expectations for the future of this joint project with GE to develop and produce state-of-the-art diesel engines. It will significantly expand our expertise and the range of products we offer to the market. In combination with our existing solutions, we will be able to offer engines to our customers that precisely meet their needs. It’s particularly noteworthy that the new venture will produce engines not only for the Russian market, but also for export,” Andrey Bokarev, Transmashholding President, said.
General Electric signed a series of agreements with its Russian strategic partners to accelerate the company’s commitment to invest USD 1 billion in the Russian oil & gas, power, and transportation industries by 2020.
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