Wärtsilä and Transmashholding (TMH) have inked a deal to set up a joint venture (JV) to produce modern multipurpose diesel engines for the Russian rail market.
Finland-based Wärtsilä and Russia-based TMH will establish a new engine factory in Penza, Russia, to jointly engineer the railway application.
The new Wärtsilä 20-engine is expected to be used in shunter locomotives that assemble and disassemble trains and move train cars in rail yards.
The factory will begin manufacturing the engines in 2012, with an estimated annual production of 250-300 engines.
The company may develop and manufacture other diesel engine models in the future, according to Wärtsilä.
The value of Wärtsilä's investment in the joint venture is expected to be €30m.