Tognum In New Russian Engine Venture

Diesel engine manufacturing plant to target rail, mining, power generation applications; engineering center for technology development

Posted on June 21, 2013

Tognum AG, the manufacturer of MTU diesel engines, and JSC Transmashholding, one of Russia's largest manufacturers of rolling stock, have reached an agreement to set up a joint venture company for diesel engine production in Kolomna, near Moscow.

The companies said the establishment of MTU Transmashholding Diesel Technologies was an important milestone in their long-term relationship and the further development of the CIS-market with modern diesel technologies.

The collaboration between the two companies dates back to June 2011, when the parties entered into a partnership agreement stipulating their rights and obligations with regard to the establishing the joint venture.

The new plant is expected to produce up to 1000 engines per year for applications including rail, mining and power generation. Plans for the new facility call for the assembling, testing and finishing of Tognum’s MTU Series 4000 diesel engines and generator sets, as well as sales and aftersales service.

In addition to manufacturing, Transmashholding and Tognum plan to set up a joint engineering center for diesel engine development, with an expected project investment of approximately €80 million. Plans for the design of the new production plant are to be completed by November 1, and production is scheduled to begin by December 2015.