The General Electric corporation (United States) will supply to the Ukrainian Railways public joint-stock company (Ukrzaliznytsia) and produce at facilities in Ukraine at least 200 locomotives over the next seven years.

Ukrzaliznytsia’s acting Board Chairman Yevhen Kravtsov announced this during a visit to the construction site of the new Beskyd Tunnel on February 15, the CFTS reports, citing the publication.

"We plan to sign an agreement on the first phase of cooperation with General Electric before the end of February. It envisages supply of 30 locomotives by the end of 2018. At least 200 locomotives will be produced jointly with GE over the next seven years," Kravtsov said.

He said that the level of localization of production should reach 10% during the first phase and that it could reach 40% later.

"To achieve a localization level of 40%, it is necessary to create a conglomerate of enterprises in the engineering sector – enterprises engaging in production of bearings, electrical equipment, engines, etc. This will provide an opportunity to create added value in Ukraine, these enterprises will receive certification from this company, and they will be able to supply spare parts not only in Ukraine, but also globally," the acting head of Ukrzaliznytsia said.

As reported earlier, Ukraine’s Prime Minister Volodymyr Groysman has announced that a contract with General Electric will be signed around February 20. Earlier, Kravtsov said that a contract for supply of diesel locomotives would be signed with General Electric Transportation before February 20. 

Semi knocked-down (SKD) production of locomotives at the Kryukov Railcar Building Works’ facilities is being planned.

According to Ukrzaliznytsia’s Director of Investment Policy and Strategic Development Anton Sobolevskyi, one of the reasons for General Electric's refusal to work with Ukrzaliznytsia’s enterprises is that they specialize mainly in repair and not production of locomotives. One of the enterprises that were considered – the Dnipropetrovsk ESZ – is in an unsatisfactory state. Production experience was important to GE, and the equipment at the Kryukov Railcar Building Works is far more advanced than the equipment at other Ukrainian enterprises.