Transmashholding and Hitachi to Produce Traction Inverters in Russia

Today JSC Transmashholding (“Transmashholding”) and Hitachi, Ltd. (TSE:6501, “Hitachi”) have signed an agreement to localize production of traction inverters for passenger rail transport in Russian Federation.

The agreement was signed by Kirill Lipa, CEO of Transmashholding, and Kiyoshi Nakata,Deputy COO Rolling Stock of Railway Systems Business Unit, Hitachi.

Per conditions of the agreement, a Transmashholding-Hitachi joint venture (“JV”) will use manufacturing capacities of OJSC Metrowagonmash (“Metrowagonmash”), a subsidiary of Transmashholding, to manufacture high-performance traction inverters in Russian Federation. Transmashholding will own 51% of the JV authorized capital of 375 million RUB, Hitachi will own 49%.

The JV will have an annual production capacity of 200 traction systems. It will carry out the design as well as manufacturing, assembly, testing, sale, repair and maintenance service of the products. This will make high-performance, high-quality traction inverters available throughout the Russian market, as well as the CIS and European markets.

Transmashholding commands an extensive distribution network in Russia and other CIS countries, and has wide experience in supplying and maintaining rolling stock.

Hitachi provides efficient and reliable electric components for Metrowagonmash’s projects in Sofia (Bulgaria), St. Petersburg (Russia) and Budapest (Hungary).

Statement from Kirill Lipa, General Director, JSC Transmashholding.

Transmashholding and Hitachi developed a strong and mutually beneficial relationship working on joint projects. The establishment of a joint venture is a logical step to further improve this relationship. We expect products of the JV to be in high demand.

Statement from Kiyoshi Nakata, Deputy COO Rolling Stock of Railway Systems Business Unit, Hitachi, Ltd.

We are delighted to sign the agreement for the JV with Transmashholding. We hope that this JV will lead to further expansion of our Railway Systems Business and the improvement of Hitachi presence in Russia as well as CIS countries.