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GE and Kazakhstan Temir Zholy (KTZ) Announce GE Evolution Series Passenger Locomotive to be Manufactured in Astana

Berlin, Germany -- GE Transportation (NYSE: GE) and Kazakhstan Temir Zholy (KTZ) announced today they have signed a new landmark agreement to extend their partnership in Kazakhstan to produce passenger locomotives at the assembly plant in Astana, Kazakhstan. GE will deliver 110 of its EvolutionTM Series locomotive kits manufactured in Grove City and Erie, Pennsylvania, USA. Lokomotiv Kurastyru Zauyty (LKZ), a joint-stock company of the Republic of Kazakhstan and a subsidiary of KTZ, assembles GE’s Evolution locomotives for railroad customers in Kazakhstan and the surrounding region. They will now produce GE’s Evolution passenger locomotives, the most technologically advanced diesel electric, heavy-haul locomotive modified for higher speed passenger service.

“This is an important day for both the Republic of Kazakhstan and GE because it demonstrates that strategic partnerships can promote long-term economic growth,” said Lorenzo Simonelli, President and CEO of GE Transportation, during the signing ceremony at Innotrans 2012 in Berlin. “KTZ and GE Transportation have a long history of working together to ensure that Kazakhstan’s critical rail infrastructure remains modern, reliable and efficient now and in the future.”

This first order of 110 locomotives will start delivery in the first half of 2014. The passenger locomotives will operate at 160 km per hour and will have features configured for passenger service in Kazakhstan and the surrounding areas. Joint Stock Company (JSC) Lokomotiv currently operates 404 GE-modernized locomotives and have taken delivery of 150 Evolution locomotives from a previous order. JSC Lokomotiv’s fleet of GE-modernized and Evolution freight locomotives are also under GE ‘s long term customized service agreement (CSA) which provides greater sustainable long term performance for their fleet.

About the Astana Assembly Plant

Lokomotiv Kurastyru Zauyty (LKZ), a joint-stock company of the Republic of Kazakhstan has been in production under GE Transportation License since 2009. The 43,000 square meter plant is capable of assembling approximately 100 locomotives per year while employing more than 600 people. With the addition of the new contract, 410 locomotives will be assembled at the Astana plant from components and kits manufactured in Grove City and Erie, Pennsylvania, USA between 2010 and 2016.

GE’s Commitment to the Republic of Kazakhstan

This announcement is the latest in a series between GE Transportation and the Republic of Kazakhstan. Since 2005, GE Transportation has helped upgrade TE10 locomotives with a modernization package that includes a new microprocessor, electronic fuel injection engine and cooling system. Modernization can extend the revenue-generating life of a locomotive by up to twenty years. GE and KTZ have been jointly producing GE’s Evolution Series locomotives since 2009. Moreover, in July GE Transportation announced a land mark MOU to produce GE Transportation’s GEVO Series engines in Astana in a three-party joint venture. The KTZ and GE Transportation long term relationship demonstrates GE Transportation’s capability to meet regional customers’ requirements for designing, manufacturing and building customized locomotives that utilizes local manufacturing capabilities and strengthens the regional economy.

About the Evolution Series Locomotive

The Evolution Series locomotive represents a $400 million investment by GE over eight years. The innovative locomotive is equipped with a 12-cylinder diesel engine that produces the same 4,400 horsepower as its 16-cylinder predecessor. The Evolution engine uses up to 5% less fuel or approximately 1.1 million fewer liters of fuel over the life of the locomotive, while reducing emissions by approximately 40%.

The Evolution Series locomotive is one of GE’s most prominent ecomagination products. Ecomagination is a GE-wide initiative to help meet customer demand for more energy-efficient products while generating profitable growth for the company. Approximately 17,000 GE locomotives are currently in use in more than 50 countries around the world.

About Kazakhstan Temir Zholy

KTZ is not only the Republic of Kazakhstan’s national railway operator, but also the beacon of modern and versatile transport in the country, supporting the steady, competitive development of Kazakhstan’s economy. KTZ’s sphere of interest includes freight and passenger transport, logistics, telecommunications, infrastructure, and investment projects. KTZ operates over 14,000 kilometers of railways, more than 1,500 locomotives, 44,000 freight wagons and 1,700 passenger cars.

About GE Transportation

GE Transportation, a unit of GE (NYSE: GE), solves the world’s toughest transportation challenges. GE Transportation builds equipment that moves the rail, mining and marine industries. Our fuelefficient and lower-emissions freight and passenger locomotives, diesel engines for rail, marine and stationary power applications, signaling and software solutions, drive systems for surface mining trucks, underground mining equipment, energy storage systems, and value-added services help customers grow. GE Transportation employs approximately 12,000 employees worldwide.


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