Talgo is awarded the contract to renew and expand the intercity passenger train coaches of the national railway company of Kazakhstan
The company is negotiating new financing facilities with Spanish and international banks to fund its international growth
Madrid, Spain – November 11, 2010 – Talgo and the national railway company of Kazakhstan (KTZ) last week signed an agreement intended to see the Spanish rail company replace the 3,000 passenger coaches that currently circulate through Kazakhstan for modern Talgo intercity coaches over the next few years.
The work will start immediately with the initial order that has been placed for 420 coaches with a value for Talgo of more than €300 million. Further revenues will be generated from related maintenance activities and as orders for more coaches are placed.
As part of this agreement, Talgo and KTZ have established a joint venture called Tulpar Talgo, LLP that will build a Talgo train coach factory in Astana next year. The intercity train coaches will be built in Spain and in the new factory in Kazakhstan.
The Kazakh contract is a result of Talgo's successful internationalisation and export strategy which has focused on an intensive commercial effort to tap the growing demand for high speed and high performance trains in particular in the USA, Middle East, Central Asia, India and China. Talgo is currently participating in a number of emblematic tenders like the high-speed line between the cities of Mecca and Medina in a consortium with RENFE; the high-speed line in Florida; the high-speed line between Rio de Janeiro and Sao Paulo; as well as others in Libya, Russia, Belorussia and India.
Talgo is in discussions with Spanish and international banks about providing finance for the international projects which account for the majority of orders for Talgo.
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