ASTANA – Alstom and Kazakhstan Temir Zholy (KTZ), Kazakhstan’s national railway company, completed the process of Alstom’s acquisition of an additional 25 percent of the Electrovoz Kurastyru Zauyty (EKZ) joint venture, formed by Alstom, KTZ and Transmashholding (TMH), the KTZ press office announced. EKZ produces electric locomotives in Kazakhstan.
According to the report, Alstom, now holding 50 percent of EKZ’s shares, is the venture’s main shareholder. KTZ and TMH each hold 25 percent of the joint venture. Alstom, which previously had one seat on the EKZ board of directors, will now have two.
“Close cooperation with the world leader in the field of transport engineering attracted foreign direct investment, the transfer of the most advanced technologies and the creation of conditions for a new production,” said President of KTZ Askar Mamin.
Henri Poupart-Lafarge, president of Alstom, said the company’s increasing interest in EKZ demonstrates its confidence in Kazakhstan’s investment attractiveness. The venture will bring new technologies and skills to Kazakhstan that will not only meet the needs of the country, but will also make it a regional hub for electric service in the Eurasian Economic Union (EAEU) and the Commonwealth of Independent States (CIS), he said. The level of localisation of production will rise to 70 percent by 2020.
By purchasing additional shares, Alstom confirms its commitment to modernising the railway industry and to Kazakhstan’s dynamic transport policy. With assistance from Alstom plants, EKZ has so far delivered to customers 31 KZ-8A freight locomotives and six KZ4AT passenger locomotives.
EKZ’s production has major export potential and can be delivered within the country and abroad. EKZ has signed a contract for the assembly and delivery to Azerbaijan’s national railway company of 50 freight locomotives, Poupart-Lafarge noted, and is looking to create more partnerships in the region.
“The first success is a project with Azerbaijan. We look also to all the surrounding states, to countries such as Iran, which represents a large potential market,” he said.
He also noted that EKZ is now increasing its production of components, in particular traction transformers, which can be integrated into any rolling stock. This production line should benefit from the demand generated by Alstom companies and other producers of electric locomotives.
It is also planned for the plant to produce traction transformers for electric locomotives, which will create 100 new jobs.