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Kazakhstan Awards Wabtec a $4.2 Billion Locomotive Order

By: via Business Wire
  • Order value represents the largest locomotive contract in company history
  • Strengthens KTZ’s role as a critical and reliable hub for the Middle Corridor
  • Expands Wabtec’s footprint serving the CIS and Eurasia regions

Wabtec Corporation (NYSE: WAB) announced today a landmark agreement with National Company Kazakhstan Temir Zholy (KTZ), the national railway of Kazakhstan, to deliver Evolution Series locomotives and provide long-term service support. The multi-year order, valued at $4.2 billion, marks the largest locomotive agreement in Wabtec’s history.

“For over two decades, our partnership with KTZ has been critical in transforming Kazakhstan’s rail industry,” said Rafael Santana, President and CEO of Wabtec. “This historic agreement embodies KTZ’s visionary approach for the country’s rail network as the primary link between Europe and Asia. By delivering advanced locomotives and long-term service solutions, Wabtec is a proud partner in Kazakhstan’s progress, helping to unlock the region’s enormous potential and developing the engineering competencies in the country’s railway industry.”

Kazakhstan represents Wabtec’s regional center of excellence, and this deal further enhances the partnership with KTZ strengthening the company’s presence and leadership as a rail technology partner and innovator in the market. The new locomotives will enhance KTZ’s ongoing rail expansion and fleet renewal and are designed to operate in the demanding weather conditions and mountainous terrain of Kazakhstan. Additionally, the next generation of Evolution Series locomotives will improve fuel efficiency and operate for longer periods between maintenance overhauls. The order also includes maintenance services agreements to support the new locomotives and KTZ’s existing railroad fleet. The services are tailored to help maximize reliability and availability of KTZ’s fleet at optimal operating costs.

"Kazakhstan plays a key role in realizing the transit potential of the Eurasian continent," said Talgat Aldybergenov, the CEO of National Railway Company of Kazakhstan Temir Zholy. "This new agreement confirms our commitment to advanced technologies in the transport sector and will also make a significant contribution to the development of industry and railway engineering in Kazakhstan."

About Wabtec

Wabtec Corporation is revolutionizing the way the world moves for future generations. The Company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for 155 years and has a vision to achieve a sustainable rail system in the U.S. and worldwide. Visit Wabtec’s website at http://www.wabteccorp.com.

Information about Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of U.S. federal securities laws. Such forward-looking statements include statements regarding the implementation and impact of Wabtec’s agreement with KTZ and performance and operating cost expectations. Such forward-looking statements are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, changes in general economic and/or industry specific conditions, including the impacts of significant shifts in trade policies (including the imposition of tariffs and retaliatory tariff measures) as well as tax programs, inflation, supply chain disruptions, foreign currency exchange and industry consolidation and market reactions to these factors; unanticipated increases in manufacturing costs; changes in the financial condition or operating strategies of Wabtec’s customers; and other risk factors, as detailed from time to time in Wabtec’s reports filed with the Securities and Exchange Commission (SEC), including Wabtec’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC. Any forward-looking statements speak only as of the date of this communication. Wabtec does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

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