ALMATY, DEC. 22 (The Conway Bulletin) — French train-maker Alstom, bought another 25% stake in Astana-based EKZ, from Kazakhstan’s Temir Zholy, to bring to 75% its ownership of the locomotive manufacturer.
This is an important deal for Kazakhstan as it shows increased confidence in its manufacturing base by major Western companies. Kazakhstan is trying to show it is serious about diversifying its economy away from oil, gas and minerals.
Didier Pfleger, Alstom Senior Vice-President for Middle-East and Africa, said the deal highlighted the success of the EKZ project and also Alstom’s commitment to the region.
“By increasing once again Alstom’s share in EKZ, we show our confidence in the attractiveness of Kazakhstan and we contribute to the development of new expertise and skills locally to address not only Kazakhstan’s needs but also regional ones,” he said in a press statement.
The value of the deal was not declared.
EKZ was set up to assemble the Prima range of locomotives in 2010 by Alstom (25%), Russia’s Transmashholdings (25%) and Temir Zholy (50%). Alstom bought a 25% stake from Temir Zholy in 2016 too. It now owns 75% of the company and Transmashholding owns 25%.
As well as assembling the Prima locomotives at its factory in Astana, EKZ now also assembles passenger wagons. Outside the extractive industries, EKZ is one of Kazakhstan’s headline companies. It employs 420 and is seen as critical in diversifying the Kazakh economy.
Kazakhstan has become a major hub in China’s Belt and Road infrastructure strategy giving its railway system a boost.
The Kazakh government has also committed itself to upgrading its network. There are 20,000km of railway tracks in Kazakhstan, the third largest railway network in the world using the 1,520mm gauge.
ENDS
— This story was first published on Jan. 5 2018 in issue 356 of The Conway Bulletin