JSC Ukrzaliznytsia and General Electric engage in elaboration of framework cooperation agreement - a result of meeting with participation of Prime Minister

The Ukrzaliznytsia state-owned company, with the assistance and support of the Government of Ukraine, is planning in November 2017 to sign a framework cooperation agreement with the global giant General Electric Transportation, being part of the General Electric transnational corporation. Appropriate arrangements were made during a meeting of Prime Minister of Ukraine Volodymyr Groysman with Jamie Miller, President and Chief Executive Officer of GE Transportation.

“We have a keen interest in building strategic relations, long-term cooperation is significant for us. We strongly welcome the entry of General Electric Transportation to Ukraine. We have a large domestic market, and we can be useful in GE projects as well,” stressed Volodymyr Groysman.

During the meeting, the parties stressed on their mutual interest in implementing the project of modernization of the rolling stock of Ukrzaliznytsia, in particular the locomotive fleet.

“It is of paramount importance for us to retrofit the rolling stock of Ukrzaliznytsia, which requires investment and technological solutions. Therefore, collaboration with GE can become a case when combining opportunities would yield success”, said Volodymyr Groysman, “the Government will exert every effort to work out all the necessary solutions asap.”

The Head of Government focused on one of the key issues to be included into the deal with Ukrzaliznytsya that is the localization of production, which can reach 40%. “It is vital for us to localize production – both of diesel locomotives and everything needed for locomotive maintenance – in Ukraine. And the fact that the decision to ensure a 40% localization means that we will produce diesel locomotives together with GE, make rolling stock upgrades and maintenance, and create dozens thousands of jobs at enterprises already operating in Ukraine,” stressed Volodymyr Groysman, “hence, now, our challenge is to switch to signing agreements without wasting time so that we could trigger the next year modernization of the rolling stock of Ukrzaliznytsia and the development of enterprises involved in the process.”

Jamie Miller added that locomotive maintenance would also contribute to better localization. "In addition, we have already conducted an analysis of suppliers within Ukraine and engage in developing of ways to use their capabilities in our global projects," said President of General Electric Transportation.