Following the signing of a share purchase agreement in Moscow on December 13th 2010, Bombardier has confirmed that BT Signaling B.V. purchased a stake in the signalling equipment manufacturer United Electrical Engineering Plants, know as Elteza.
Bombardier confirmed that BT Signaling B.V. has purchased a 25% stake in Elteza, a subsidiary of Russian Railways. Subject to further approval, BT Signaling B.V. could increase its stake to up to 50%. Russian Railways will remain the majority shareholder.
Elteza is Russia’s largest signalling equipment producer with more than 3000 employees across 7 manufacturing sites. The company focuses on the design, development and production of rail signalling equipment and automatic and remote train control systems which have been delivered in Russia. The new partnership will be one of the first successful examples of the privatisation of a Russian Railways’ subsidiary and part of the modernisation strategy on RZD.
Already strong partners in the signalling sector, Bombardier and RZD have a well established engineering joint venture, Bombardier Transportation (Signal) Ltd, which has been in operation in Moscow since 1996.
This partnership has worked in close cooperation with Elteza to equip over 100 Russian stations with BOMBARDIER EBI Lock 950 computer-based interlocking (CBI) technology. The new agreement leads to the creation of an Elteza department dedicated to new technologies and focusing on the manufacture of products.
Commenting on the announcement, Andre Navarri, President and CEO of Bombardier Transportation, 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 signalling technology interests.” He added: “We value this opportunity to further develop our presence in Russia but also in CIS and Baltic States.”
