You're reading: Luhanskteplovoz to supply 332 locomotive sections to RZD in 2014

Public joint-stock company Luhanskteplovoz owned by Russia's Transmashholding (TMH) plans to supply 332 locomotive sections to Russian Railways (RZD) in 2014 (around 260 locomotive sections will be supplied this year).

According to an interview of Luhanskteplovoz CEO Pavel Cesnek posted
on the company’s Web site, it is planned to supply 220 sections of the
2TE116U dual-section locomotive, 88 sections of the 2TE116UD diesel
locomotive with a General Electric engine, and 24 sections of the
three-section 3TE116U diesel locomotive.

In addition, next year it is planned to produce, test and certify a
sample of the 2TE116UR new locomotive with a German MTU engine, as well
as design the TE44 diesel locomotive of 6,000 hp per section and the
2TE116UG locomotive with a gas and diesel engine.

It is also planned to produce freight electric locomotives under a
contract with Ukrzaliznytsia to supply 300 DC/AC locomotives for Donetsk
and Odesa railways.

“The production of electric locomotives in cooperation with
Novocherkassk colleagues was started in 2013, and it will continue next
year, while in 2015 the plant will reach a production capacity of 100
electric locomotives (200 sections) a year,” Cesnek said.

As reported, in 2014, it is planned to supply 28 2EL4 electric locomotives by Luhanskteplovoz by Ukrzaliznytsia.

Cesnek said that at the end of the term of production of locomotives
(by 2017) Ukrainian suppliers of parts and components for the production
of electric locomotives would boost their production, taking into
account the planned maximum localization of their production in Ukraine.

As for the results of the operation this year, Cesnek said that
production for Ukrainian and Russian railways came to near UAH 3
billion, which was an absolute record over the whole history of the
enterprise.

In 2013, the plant produced 283 locomotive sections, started
producing new super-powerful 3TE116U diesel locomotive, which is capable
of pulling trains of around 10,000 tonnes.

“In the year-and-a-half I’ve been working at the plant I believe that
we managed to achieve positive results. The pace of growth in
production exceeds 60% for the second year in a row,” Cesnek said.

He said that this year UAH 271 million was paid to the budget and
off-budget funds compared with UAH 177 million a year ago, and the debt
of the state on VAT refunding is retained at UAH 346 million.

Cesnek said that in the difficult conditions of operation of
engineering in Ukraine were complicated by difficult relations with the
main partner – Russia, Luhanskteplovoz is an exception thanks to orders
from TMH and its investments.

Cesnek said that in 2014 it is planned to invest over UAH 100 million
in upgrading equipment. He said that this year UAH 84 million was
invested in repairing and upgrading equipment, transfering production
shops and repairing premises.

Electricity consumption fell by 46% and gas consumption by 55% thanks
to measures for the concentration of production facilities.

“We give work not only to ourselves, but to adjacent companies, as
the plant cooperates with 67 enterprises in the region, including
Transmash, Luhtsentrokuz, Stal, Telsis, electromechanical, electrical
equipment and battery plants,” he said.

At present, the main workshops of the enterprise work in the
three-shift regime (five working days a week). The average monthly wage
amounts to UAH 5,500 and 450 people were hired.

“We hope that next year production will grow by at least 25%,” the enterprise told Interfax-Ukraine.

Luhanskteplovoz produces mainline and shunting diesel locomotives,
diesel and electric trains, trams, and spare parts for railway
transport.

As reported, last year the company boosted production by over 70% on
2011, to 162 locomotive sections, which is 60 sections more than in
2011. Its net sales income grew by 97%, to UAH 1.694 billion.