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26 April 2013, 0:00

Kirovsky Zavod and ŠKODA TRANSPORTATION Launch Joint Venture

The Russian-Czech joint venture will manufacture metro cars, trams and electric trains. The sales revenues are projected to reach $130 million by the end of 2015.

 

According to the signed agreement between Kirovsky Zavod and ŠKODA TRANSPORTATION, the joint venture will assemble modern metro cars, multi-section low-floor trams and innovative double-decker electric trains under the Kirov-Škoda brand. The headquarters and the production site of the new joint venture will be located on the territory of Kirovsky Zavod in Saint Petersburg. The designated production facility that will host a five-axis machining center for railway carts, five paint booths and further machine-building equipment is currently being renovated.

 

It is planned that the Kirov-Škoda joint enterprise will launch a full production cycle including machine processing, welding, painting, assembling and testing of the products. During the first part of the project both parties are to invest about $20 million.

 

"By establishing the joint venture Kirovsky Zavod will expand its competencies in production of railway and suburban electric trains and introduce unique high-tech Škoda products to Russian and Eastern European markets," commented Georgy Semenenko, CEO of Kirovsky Zavod on the joint venture plans.

The joint venture will use Škoda innovative technologies and solutions that will be modified according to clients' needs. In particular, the Saint Petersburg production site will manufacture high-end metro cars that consume 30 percent less energy than any other trains that are being used in Russia today. Further, the metro cars will be more passenger-friendly and have better sound insulation than most other modern metro cars.

 

Low-floor trams conforming to European standards in comfort and energy consumption are another product that will be manufactured by the Russian-Czech joint venture. Beside traditional access ramps and air-conditioning systems, the trams will be equipped with rubber wheels that smooth the ride and reduce the noise level.  Finally, the Kirov-Škoda joint venture plans to assemble suburban trains of the ŠKODA TRANSPORTATION brand including high-tech double-decker electric trains.

 

According to Semenenko, the key markets for the Kirov-Škoda products will be Saint Petersburg, Moscow and other large Russian cities. "It is quite beneficial that the new joint venture is being built on the basis of an already established enterprise - Kirovsky Zavod - that has a contract to supply 54 cars for the Saint Petersburg metro totaling $103 million," stated Semenenko.  It is planned that in two years the joint venture's revenue will reach $130 million. The implementation of this project will allow Kirovsky Zavod to create about 800 new jobs.

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