OJSC URALVAGONAVOD AND ELECTRO-MOTIVE DIESEL SIGN A MEMORANDUM OF UNDERSTANDING TO CONSIDER OPPORTUNITIES FOR MAINLINE LOCOMOTIVES IN RUSSIA

OJSC NPK UralVagonZavod (UVZ), a leading railway industry manufacturing corporation, has signed a Memorandum of Understanding with Electro-Motive Diesel, Inc. (EMD), a leading manufacturer of diesel-electric locomotives, to examine potential opportunities for the development and build out of mainline locomotives in Russia. Per the MOU, the companies anticipate having demonstration units in Russia for performance and certification testing in 2014.

The MOU also addressed the consideration of a joint engineering team to potentially develop a mainline locomotive model at 4500 BHP using an EMD AC transmission system, EMD 16-710 engine and other EMD service proven components, technologies and designs. EMD and UVZ will also examine adopting a goal to achieve 50 percent local content in Russia for the locomotive build program.

The manufacture of modern, mainline freight locomotives on Russian territory would bring opportunities for incorporating the latest EMD natural gas technologies.

EMD locomotives operate globally on railways in all climate zones, with proven reliability and relatively low lifecycle cost. The companies are working toward signing a definitive agreement in the coming months.