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GE signs 1-bln-USD locomotive supply deal with Ukraine

Source: Xinhua| 2018-02-24 04:07:42|Editor: Mu Xuequan
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WASHINGTON, Feb. 23 (Xinhua) -- U.S. multinational conglomerate General Electric (GE) said on Friday it signed a 1-billion-U.S. dollar framework agreement with the state-run Ukrainian Railways to supply 30 new freight locomotives.

The agreement is the largest ever for GE in Ukraine, GE's transportation unit said. Under the deal, GE will also supply additional locomotive kits over 10 years, rehabilitate locomotives in the railway's legacy fleet, and provide long-term maintenance services.

Locomotive production is planned to begin in the United States in early 2018, with the first deliveries scheduled for this fall.

In addition, certain work will be localized in Ukraine to further bolster job creation and economic development in the country.

The Ukrainian government said that about 40 percent of the vehicles' components will be produced in Ukraine.

"In addition to addressing Ukraine's needs for greater capacity, this strategic partnership with GE will also provide a powerful impetus to further develop domestic manufacturing," said Yevgen Kravtsov, acting Chairman of the Board of Ukrainian Railways.

"This deal demonstrates our expanding global customer base and is a promising step forward in our relationship with Ukrainian Railways, which can serve as a catalyst in attracting international financing and accelerating economic growth in Ukraine," said Rafael Santana, President and CEO of GE Transportation.

Ukrainian Prime Minister Volodymyr Groysman described the deal as an "unprecedented agreement" for the Ukrainian economy.

The deal marks a major milestone in the country's efforts to modernize its transportation infrastructure and strengthen its position as a key European rail hub and trade corridor.

"It will provide a significant impetus for the development of Ukrainian transport infrastructure and domestic machine building," said Groysman.

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