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Siemens to build regional trains in Russia: Joint venture with Sinara Group to supply railway operator RZD

Preliminary contracts over 240 regional trains with a total value of about EUR 2 billion signed

Siemens has formed a joint venture in Russia with its Russian partner Sinara Group to deliver regional trains. The new company Train Technologies has entered into an agreement on main terms for delivery of Desiro RUS electric trains with Russian Railways (RZD).

The preliminary contract covers 240 trainsets comprising 1,200 railcars, with a total value of about EUR 2 billion. The underlying agreements were signed today during the Forum 1520 congress in Sochi by RZD President Vladimir Yakunin, Hans-Jörg Grundmann, CEO of the Mobility Division of Siemens, and Dimitry Pumpyanski, CEO of the Sinara Group. Final contract details will be agreed during the following negotiations.

Starting in the year 2013, the trains will be produced at a manufacturing facility close to Yekaterinburg. Initially, the joint venture will produce the remaining 16 trains from an order encompassing a total of 54 railcars that was placed with Siemens by RZD in 2009. The contract had a volume of approximately EUR 580 million. In connection with that order acquired in 2009, RZD and Siemens already agreed on a partial train production in Russia. The Siemens plant in Krefeld has recently started producing the first 38 of these trains of the model Desiro RUS in Germany. Now the legal basis is being laid for producing the remaining 16 trains in Russia.

Siemens’ Desiro-model trains, which are designed for regional transit, can reach speeds of up to 160 km/h. In Russia, they are known by the name of “Lastochka,” which means “little sparrow.” The first units are planned to go into service in Sotchi starting in the autumn of 2013. Russia has a great need for modern rail technology. Over the next 30 years, the country plans to invest roughly EUR 300 billion in new trains and infrastructure. “Russia is a strategic growth market for rail technology. Cities in Russia are likewise faced with the challenge of having to increase the quality of life and the competitiveness while conserving resources and protecting the environment at the same time. Our green infrastructure technologies are helping Russia to reach its goals of energy efficiency and climate protection,” said Hans-Jörg Grundmann, CEO Siemens Division Mobility.

The Siemens Industry Sector (Erlangen, Germany) is the worldwide leading supplier of environmentally friendly production, transportation and building technologies. With integrated automation technologies and comprehensive industry-specific solutions, Siemens increases the productivity, efficiency and flexibility of its customers in the fields of industry and infrastructure. In fiscal 2010, which ended on September 30, 2010, revenue from continuing operations of the Industry Sector (excluding Osram) totaled around €30.2 billion. At the end of September 2010, Siemens Industry Sector had around 164,000 employees worldwide without consideration of Osram.

The Siemens Mobility Division (Berlin, Germany) is the internationally leading provider of transportation and logistics solutions. With “Complete mobility”, the Division is focused on networking the various modes of transportation in order to ensure the efficient and environmentally compatible transport of people and goods. “Complete mobility” targets the goal of sustainability and combines the company’s competence in operations control systems for railways and traffic control systems for roadways together with solutions for airport and postal logistics, railway electrification, rolling stock for mass transit, regional and mainline services, as well as turnkey systems and forward-looking service concepts. With around 24,000 employees worldwide Siemens Mobility posted sales of €6.5 billion in fiscal year 2010 (ended September 30).

Siemens AG
Corporate Communications and Government Affairs Wittelsbacherplatz 2, 80333 Munich Germany

Reference number: I MO 201106.025 e fp

Media Relations: Peter Gottal
Telephone: +49 30 386 20280
Siemens AG
Industry Sector
Nonnendammallee 101, 13629 Berlin, Germany

Peter Gottal | Siemens Industry
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