Russia’s TMH to build USD 100 mn factory to manufacture railway cars in Egypt
INVESTMENT WATCH- Russia’s TMH to build USD 100 mn factory to manufacture railway cars in Egypt: Russia’s Transmashholding (TMH) is looking to establish a USD 100 mn facility in Egypt to manufacture railway cars, the company’s local representative, Hamdy Abdel Hamid, told Al Shorouk yesterday. Talks are currently ongoing to establish the factory within a Military Production Ministry complex, with the aim of covering local needs and exporting surplus output. Details on the timeline and financing for the project were not disclosed.
Announcement comes after big contract win: The Egyptian National Railway signed an agreement with TMH last month that will see the Russian company supply 1,300 railway cars, of which 30% are set to be manufactured locally, according to Abdel Hameed. The agreement, which covers stock maintenance and labor training for 15 years, is set to be financed through a loan by a Russian-Hungarian banking consortium that carries a 1.58% interest rate with a 14-year repayment period and four-year grace period, he added. Egypt will pay a total of EGP 22 bn to buy the cars and will receive the first batch within 14 months and the last car within 40 months from the start of manufacturing.