Russian investment company Sinara Group and Škoda Transportation have agreed to form a joint venture (JV) to produce subway trains, trams and trolleybuses.

The two companies will hold equal shares in the JV. New products manufactured will be sold under the brand name Sinara-Škoda.

Founded in 2001, Sinara Group has its headquarters in Yekaterinburg, Russia. The firm focuses on investing in real estate, transport engineering and financial services.

The company’s subsidiary Sinara – Transport Machines produces locomotives and other vehicles.

Škoda Transportation group president Petr Brzezina said: “Russia is a huge and promising market in which we want to establish ourselves in the long term. The local fleet requires a massive renewal, entailing large investments and opportunities.

“In Sinara Group we see a stable and reliable partner with whom we will be able to develop the production of electric vehicles for public transport in Russia. Škoda has supplied many high-quality products to the local market in the past, and I firmly believe that we will be able to build on our previous successes with a strong partner.”

Sinara – Transport Machines CEO Viktor Leš added: “Our experience in development, production and service will enable us to create products that will outperform existing vehicles in terms of comfort, ergonomics, energy efficiency and environmental friendliness.”

Earlier this week, Škoda Transportation received a CZK4bn ($174.8m) contract to supply trams to Germany-based transport company Bonn.

In June, Russian Railways (RZD) placed an order worth nearly €1.1bn with Siemens Mobility and Ural Locomotives, a JV of Sinara Group and Siemens to procure 13 high-speed Velaro RUS trains.

Last year, Škoda supplied the first ForCity Classic tram to Chemnitz transportation company (CVAG) in Germany.