Bombardier Announces Joint Venture

TORONTO -- Bombardier, the world's second-largest train maker by sales, said Wednesday that it agreed to design and build locomotives in Russia with railcar maker Transmashholding.

Each company will have an equal stake in the venture, which will focus on manufacturing locomotives using asynchronous propulsion technology for Russia and neighboring markets, Bombardier said in a statement.

The venture, which follows a May 2007 agreement to jointly develop propulsion technologies and electrical components, will position Bombardier to benefit from the overhaul of Russia's aging rolling stock.

About 73 percent of electric trains and 84 percent of diesel locomotives operated by state-owned Russian Railways have exceeded their suggested operating life, the companies said in the statement. Russian Railways will need 11,675 new locomotives by 2015.