Wartsila willing to make all parts for diesel engines in Penza - governor
PENZA. Oct 30 (Interfax) - Finnish corporation Wartsila, which is building a plant in Penza for a joint venture with CJSC Transmashholding (TMH) , is willing to entirely localize production of parts for diesel engines in Penza region, Vasily Bochkarev, the regional governor, said at a briefing Monday.
"The Finns are willing to have 100% of the parts manufactured here. This does not just mean new jobs, but new technology and a new manufacturing culture," he said after talks with Wartsila last week in Finland.
The governor of Penza reckons there is good potential for developing relations with Wartsila.
"I am pleased with the talks. Most importantly we covered the issue of localizing parts at companies in Penza region. This is a key project for the region," Bochkarev said.
In addition, the corporation is also willing to train specialists, he said.
TMH and Wartsila reached an agreement in 2010 to form a JV for the design and production of railway, sea vessel and energy diesel engines.
Investment in the new company is around 50 million euros. The first phase, which is for the assembly and testing of diesel engines, is due to be launched in the summer of 2013. The second phase will see the production of diesel engines with parts manufactured at TMH companies and Penza plants.
Full capacity of 300 engines per year is expected to be achieved by 2017. The engines will be sold in Russia and the CIS and later in Europe. Production is being set up at the available sites of OJSC Penzadieselmash, which is part of TMH.
