UPDATE 1-Bombardier, Transmashholding team up on locomotive

Related Topics

Quotes

   

Wed May 21, 2008 4:02pm BST

(Adds details, changes dateline, previous MONTREAL)

OTTAWA May 21 (Reuters) - The world's biggest train maker, Bombardier Inc (BBDb.TO), has teamed up with Russia's CJSC Transmashholding to develop a new high-tech locomotive, the companies said on Wednesday.

A new joint-venture company, to be located in Russia, will design "new generation" locomotives using asynchronous propulsion technology for Russian and export markets.

This marks the third venture between Bombardier's railway division and Transmashholding, Russia's top rolling stock maker.

In May 2007, the two companies established joint ventures to develop advanced propulsion technology for railway equipment and to manufacture key components for electric locomotives, such as traction converters based on Bombardier propulsion technology.

"The establishment of a new company to develop a family of new-generation locomotives is a further example of our intention to expand long-term partnerships with Russian industry," Bombardier Transportation President Andre Navarri said in a statement.

There were reports late last year that Bombardier would buy an equity stake in Transmashholding. Bombardier said at the time that it was in preliminary talks, but would not comment further.

Bombardier's class B shares were 1.3 percent lower at C$7.57 early on Wednesday on the Toronto Stock Exchange.

($1=$0.98 Canadian)

(Reporting by Robert Melnbardis and Susan Taylor; Editing by Peter Galloway)

((susan.taylor1@thomsonreuters.com; +1 613 235 8385; Reuters Messaging: susan.taylor1.reuters.com@reuters.net)) Keywords: BOMBARDIER/TRANSMASHHOLDING

(C) Reuters 2008. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN21528256

Regulatory News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.