Tognum In New Russian Engine Venture
Tognum AG, the manufacturer of MTU diesel engines, and JSC Transmashholding, one of Russia's largest manufacturers of rolling stock, have reached an agreement to set up a joint venture company for diesel engine production in Kolomna, near Moscow. A memorandum on the agreement on the establishment of MTU Transmashholding Diesel Technologies was signed at the International Economic Forum in St. Petersburg by Andrey Bokarev, president of Transmashholding, and Joachim Coers, Tognum CEO.
“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 said.
The start of the collaboration between the two companies dates back to June of 2011, when the parties entered into a partnership agreement stipulating their rights and obligations with regard to the establishing the joint venture.
The new plant is expected to produce up to 1000 engines per year for applications including rail, mining and power generation. Plans for the new facility call for the assembling, testing and finishing of Tognum’s MTU Series 4000 diesel engines and generator sets, as well as sales and aftersales service.
Along with manufacturing, Transmashholding and Tognum plan to set up a joint engineering center for diesel engine development. Investment in the project is expected to reach around €80 million. Plans for the design of the new production plant are to be completed by November 1, and production is scheduled to begin by December 2015.