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In late 2018, Ukraine will have received the first batch of environmentally safe locomotives, adapted to the country’s climatic conditions and economical in terms of their maintenance.
U.S.-based General Electric and Ukrainian Kremenchuk-based PJSC Kryukivsky Railway Car Building Works (KRCBW) have agreed to supply 30 TE33A Evolution Series diesel locomotives to Ukrainian state-run railways operator JSC Ukrzaliznytsia with the 10% localization of the production process in Ukraine.
"The first 30 TE33A Evolution Series diesel locomotives will be produced with the participation of the domestic Kryukivsky Railway Car Building Works. According to the Ukrainian contract, the localization for the first batch of locomotives [production] is set at 10%. Subsequently, they will be assembled, at least 40% from Ukrainian components. Now, General Electric continues to determine the production capacity base among domestic enterprises," Acting CEO of Ukrzaliznytsia Yevhen Kravtsov wrote on Facebook.
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According to the official, this will be a record high shipment over Ukraine's independence.
"The final stage of locomotive production for Ukrzaliznytsia has already begun in Pennsylvania. In late 2018, we will received the first locomotives, adapted to our climatic conditions, environmentally safe, economical in maintenance, as well as comfortable and safe for crews," he wrote.
The acting CEO added that the localization of production at its initial stages in Ukraine is an unprecedented move.
"Ukrzaliznytsia and [U.S.-based] GE Transportation [a division of General Electric] launch the program of locomotive production localization in Ukraine. In my opinion, this is a great victory and a landmark point for the Ukrainian Railways and the entire industry. Localization at the initial stages [of production] was a key and fundamental condition in our talks with GE. I can say that neither in India, nor in Kazakhstan does such a contract provide for localization starting from the first sample," he added.
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As UNIAN reported earlier, the state-run Ukrzaliznytsia signed a framework deal with General Electric on the supply to Ukrzaliznytsia about 225 locomotives worth US$1 billion, with the localization of the production process in Ukraine at 40%.
As part of the first stage of the agreement, a purchase and sale contract was signed between General Electric and Ukreximbank for the delivery of 30 GE TE33AC diesel locomotives late in 2018 and early in 2019 with a localization level of 10%.
Ukrzaliznytsia will purchase 30 locomotives from General Electric for $4.68 million per unit.