Bombardier, RZD announce “new partnership”
Written by William C. Vantuono, Editor-in-ChiefBombardier Transportation said Monday its BT Signaling B.V. operation has signed an agreement to purchase a stake in signaling equipment manufacturer United Electrical Engineering Plants, known as Elteza. Elteza is a subsidiary of Russian Railways (RZD).
Initially, BT Signaling B.V. will purchase a 25% stake in Elteza. Following further approval, BT Signaling B.V. will increase its stake to nearly 50%. RZD will remain the majority shareholder, Bombardier said. The transaction is expected tobe completed during the first quarter of 2011.
The parties signed the agreement Monday at a ceremony in Moscow attended by Bombardier Inc. President and CEO Pierre Beauudoin and RZD President Vladimir Yakunin.
Elteza is Russia’s largest signaling equipment producer, with more than 3,000 employees located at seven manufacturing sites. The company focuses on the design, development, and production of rail signaling equipment and automatic and remote train control systems which have been delivered in Russia, the Commonwealth of Independent States (CIS), and the Baltic states.
Bombardier hails the partnership as “one of the first successful examples of the privatization of a Russian Railways’ subsidiary and part of the modernization strategy of RZD.”
Bombardier and RZD already have an established engineering joint venture, Bombardier Transportation (Signal) Ltd., in operation in Moscow since 1996.
In a statement, Bombardier Transportation President and COO André Navarri said, “This agreement is a landmark for Bombardier Transportation, increasing our already strong presence in the rail control sector in the region and expanding our signaling technology interests.” He added, “We value this opportunity to further develop our presence in Russia but also in CIS and Baltic States.”
