Joint Venture Of Siemens AG And Russian RZD

Siemens AG and Russian Railways OJSC (RZD) are opening an engineering center that will design electric trains for Russia. Working in the joint venture, German designers will share part of their technologies with Russians. The Russian authorities expect that with time the country will be able to manufacture the lion's share of components for the Sapsan express train. 

Siemens AG and RZD signed the memorandum of joint production and maintenance of state-of-the-art electric trains in Russia in July 2010. The Engineering Center will be incorporated in the joint venture. Its objectives include adaptation of design and engineering documentation to Russian conditions for the Lastochka (the Swallow) train developed on the Desiro technical platform.

The first 38 set of trains estimated at 410 million euro will be made at the German facility of Siemens AG. The Lastochka trains will come to Russia before the end of 2013. In September, the companies signed one more contract for delivery of 16 electric trains, some components (about 35%) for which will be manufactured in Russia. The manufacturing of Lastochka trains will be organized by the joint venture that will be established by spring of 2011.