Siemens has signed a €1bn ($1.3bn) deal with Austrian Federal Railways (OBB) for the delivery of up to 200 regional passenger trains.
The eco-friendly Desiro ML-type multiple units are expected to be supplied over the next five years, with OBB having the right to extend this period beyond 2015.
Consisting of three-car standard units and 17 seats, the Desiro trains are expected to be used for cross-border regional rail services between Germany and Austria.
The electric units, which can run at 160km/h, are built to adapt individually and easily to changing passenger numbers, according to the Siemens.
Siemens said the units will have an enhanced propulsion system and environmentally compatible materials to render them eco-friendly.
The electric multiple units are expected to be constructed in Siemens plants in Austria or Germany, and the company has the choice of maintaining the trains.