Leningrad Region Governor Valery Serdyukov is holding talks with representatives of US company General Electric (GE) in regard to a project which calls for the building of a factory in the region where engines for diesel locomotives will be reconstructed and produced, according to the Leningrad Region government press service.
GE is looking over the possibility of placing a factory in the Tosnensky or Vsevolozhsky district area of Leningrad Region. Earlier, GE announced the intention to begin building a factory only after the signing of an agreement with the Rail Roads Ministry. As part of a complex program of modernization the Rail Roads Ministry is planning over the course of five years to place new engines in 765 Russian locomotives.
The first phase of the plan calls for GE to invest USD 25 million in the construction of a factory in the Leningrad Region. The company will produce 200 diesel engines per year. Over the course of the next five years the company plans to invest USD 50 million, and the production of diesel locomotive engines will increase to 500 per year. It is expected that 80 percent of the engines will be purchased on the Russian market.
General Electric is a highly diversified US company working in the area of high technology and production services. The companies activities range from production of airplane engines, turbines and plastic to providing financial services, and the creation of television programs. GE profits in 2002 increased in comparison with 2001 by 7% and reached USD 15.1 billion.