Alstom has completed the acquisition of an additional 25% stake in the Kazakh EKZ joint venture (JV) from Kazakhstan Railways Kazakhstan Temir Zholy (KTZ).
EKZ was formed by Alstom, KTZ and Transmashholding (TMH), to produce electric locomotives in Kazakhstan.
Go deeper with GlobalData
With the deal now complete, Alstom becomes the main shareholder of the JV with 50% of the shares, while both KTZ and TMH each hold 25%.
Alstom has also agreed to allow Kazakh EKZ to produce on-board transformers for the electric locomotives at its factory in Astana and become a supplier of such components to Alstom.
Production will begin in the first half of this year with an objective of producing 200 transformers annually.
See Also:
As a result of these deals, Alstom will help to develop the Astana factory to improve the export potential of its locomotives, starting with neighbouring countries of Eurasian Economic Union and CIS, such as Azerbaijan or Uzbekistan.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAlstom CIS senior vice-president Martin Vaujour said: "The increase of our stake in EKZ and the start of a new production are a logical step in the Alstom’s strategy in Kazakhstan: building a solid and long-term partnership with the country.
"Through localisation of technology, production, creation of new working places and training for the local personnel, Alstom gets Kazakhstan’s machinery-building industry to a new level and opens it to the global market with 400 local jobs already created.
"The overall localisation reached 28% and will be increased to 50% in two coming years. I am sure that our cooperation will continue, to the benefit of all the stakeholders, thanks to the favourable investment climate set by Kazakhstan."
With assistance from Alstom plants in France, EKZ is supplying electric locomotives to KTZ under a contract that runs up to 2020, and has so far delivered 31 KZ8A freight locomotives and six KZ4AT passenger locomotives for operation on Kazakhstan’s rail lines.
Last year, Alstom and Kazakh EKZ won an order for the delivery of 50 locomotives for Azerbaijan Railways.
Image: Alstom now becomes the main shareholder of the Kazakh EKZ JV with 50% of the shares. Photo: courtesy of Alstom.
