PM Groysman: General Electric to help Ukraine modernize, build new locomotives

"Understanding was reached to sign a framework agreement on cooperation between Ukrzaliznytsia and General Electric Transportation," the prime minister tweeted on Wednesday, October 4.

General Electric Transportation produces engines and goods for the railway industry.

Read alsoU.S. Greenbrier to build about 10,000 wagons in UkraineGroysman gave more information on his Facebook page, saying that the point at issue is a joint project for modernization of Ukrzaliznytsia's rolling stock, the construction of new locomotives and the involvement of Ukrainian enterprises in other global projects.

"We've agreed that local content will be at least 40%, which means that our enterprises will receive orders, and workers will have work and decent wages. This will be strategic cooperation with General Electric, which means new jobs, new technologies and new market horizons for our railroad workers. Therefore, the task now is to move as quickly as possible to the signing of agreements so that we can start the modernization of Ukrzaliznytsia's rolling stock and the development of enterprises involved in the process as early as next year," Groysman wrote.

Read alsoUkrzaliznytsia projects over US$423 mln in loss from passenger transportation in 2017On October 3, Ukrainian President Petro Poroshenko met with President and CEO of U.S. General Electric Transportation Jamie Miller. They touched, among other things, on prospects for the participation of the American side in the modernization of Ukrzaliznytsia.

In July 2016, General Electric signed a memorandum of cooperation with JSC Ukrzaliznytsia. This agreement foresees expansion of cooperation in the development and modernization of diesel locomotives based on the advanced technologies of General Electric.