Alstom has reached an agreement with the Kazakhstan Government for the expansion of local production and maintenance capacity.

Under the agreement, the train maker will work with the government to jointly develop projects related to the extension of rolling stock production and service centres in the country.

The agreement highlights collaboration areas associated with technology transfer, maintenance capability, and the production of electric locomotives and components.

Alstom will invest around €50m for the development of new bogie and electrical cabinet workshops, service centres and maintenance depots.

Through a €126m investment in setting up the current manufacturing capability, the company has raised the level of local content in its locomotives to 31% from 4% in the country.

Alstom chairman and CEO Henri Poupart-Lafarge said: “I am optimistic about Alstom’s partnership with Kazakhstan.

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“Kazakhstan’s geographical location, attractive climate for foreign direct investments and growing demand for mobility solutions, creates the right environment for Kazakhstan to not only be a transit hub in the region but also position itself as a competitive industrial base.”

Alstom opened seven production facilities, including the electric locomotive assembly plant (EKZ) in Astana and KEP in Almaty to produce point machines, over the last 12 years.

Last month, Alstom launched an expanded rolling stock facility at Taubaté in the State of São Paulo, Brazil.