LocoTech Group and Russian Railways (RZD) have signed a contract worth RUB 243.9 billion (EUR 4.28 billion) for the execution of maintenance works for Russia’s national operator’s fleet of locomotives. The contract will be carried out by 2022 and, according to it, 14.800 locomotives will be overhauled.
Repair works will be executed by Zheldorremmash, a division of LocoTech Group. In turn, Zheldorremmash includes nine companies, including from Russia, specialized in locomotive repair works.
RUB 46.5 billion (USD 816 million) were allocated to replace the obsolete locomotives.
“This contract is very important and allows us to calculate our resources so as to implement a long-term investment strategy. Thus, to improve Zheldorremmash’s production capacity, we plan to invest over RUB 10 billion (USD 175 million). In 2017, we have already allocated RUB 1.2 billion (USD 21 million) of the amount”, declared Yuri Degtyarev, General Manager LocoTech.
Zheldorremmash was established in 2009 by RZD Directorate to repair traction rolling stock based on the implementation provisions of the railway structural reform. Zheldorremmash is a market leader in Russia in the production of spares, but also for traction rolling stock repairs.
The new production units it includes are located in cities such as Yekaterinburg, Rostov-on-Don, Novosibirsk, Chelyabinsk, Yaroslavl, Astrakhan, Voronezh, Ulan-Ude and Ussuriysky.
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