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Siemens to build regional trains in Russia: Joint venture with Sinara Group to supply railway operator RZD


Preliminary contracts over 240 regional trains with a total value of about EUR 2 billion signed

Erlangen, Germany / Sochi, Russia, Siemens has formed a joint venture in Russia with its Russian partner Sinara Group to deliver regional trains. The new company Train Technologies has entered into an agreement on main terms for delivery of Desiro RUS electric trains with Russian Railways (RZD). The preliminary contract covers 240 trainsets comprising 1,200 railcars, with a total value of about EUR 2 billion. The underlying agreements were signed today during the Forum 1520 congress in Sochi by RZD President Vladimir Yakunin, Hans-Jörg Grundmann, CEO of the Mobility Division of Siemens, and Dimitry Pumpyanski, CEO of the Sinara Group. Final contract details will be agreed during the following negotiations.

Starting in the year 2013, the trains will be produced at a manufacturing facility close to Yekaterinburg. Initially, the joint venture will produce the remaining 16 trains from an order encompassing a total of 54 railcars that was placed with Siemens by RZD in 2009. The contract had a volume of approximately EUR 580 million. In connection with that order acquired in 2009, RZD and Siemens already agreed on a partial train production in Russia. The Siemens plant in Krefeld has recently started producing the first 38 of these trains of the model Desiro RUS in Germany. Now the legal basis is being laid for producing the remaining 16 trains in Russia.

Siemens’ Desiro-model trains, which are designed for regional transit, can reach speeds of up to 160 km/h. In Russia, they are known by the name of “Lastochka,” which means “little sparrow.” The first units are planned to go into service in Sotchi starting in the autumn of 2013. Russia has a great need for modern rail technology. Over the next 30 years, the country plans to invest roughly EUR 300 billion in new trains and infrastructure. “Russia is a strategic growth market for rail technology. Cities in Russia are likewise faced with the challenge of having to increase the quality of life and the competitiveness while conserving resources and protecting the environment at the same time. Our green infrastructure technologies are helping Russia to reach its goals of energy efficiency and climate protection,” said Hans-Jörg Grundmann, CEO Siemens Division Mobility. ​

The Siemens Industry Sector (Erlangen, Germany) is the worldwide leading supplier of environmentally friendly production, transportation and building technologies. With integrated automation technologies and comprehensive industry-specific solutions, Siemens increases the productivity, efficiency and flexibility of its customers in the fields of industry and infrastructure. In fiscal 2010, which ended on September 30, 2010, revenue from continuing operations of the Industry Sector (excluding Osram) totaled around €30.2 billion. At the end of September 2010, Siemens Industry Sector had around 164,000 employees worldwide without consideration of Osram. Further information is available on the Internet at:

The Siemens Mobility Division (Berlin, Germany) is the internationally leading provider of transportation and logistics solutions. With “Complete mobility”, the Division is focused on networking the various modes of transportation in order to ensure the efficient and environmentally compatible transport of people and goods. “Complete mobility” targets the goal of sustainability and combines the company’s competence in operations control systems for railways and traffic control systems for roadways together with solutions for airport and postal logistics, railway electrification, rolling stock for mass transit, regional and mainline services, as well as turnkey systems and forward-looking service concepts. With around 24,000 employees worldwide Siemens Mobility posted sales of €6.5 billion in fiscal year 2010 (ended September 30).

This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect Siemens’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. In particular, Siemens is strongly affected by changes in general economic and business conditions as these directly impact its processes, customers and suppliers. This may negatively impact our revenue development and the realization of greater capacity utilization as a result of growth. Yet due to their diversity, not all of Siemens’ businesses are equally affected by changes in economic conditions; considerable differences exist in the timing and magnitude of the effects of such changes. This effect is amplified by the fact that, as a global company, Siemens is active in countries with economies that vary widely in terms of growth rate. Uncertainties arise from, among other things, the risk of customers delaying the conversion of recognized orders into revenue or cancelling recognized orders, of prices declining as a result of continued adverse market conditions by more than is currently anticipated by Siemens’ management or of functional costs increasing in anticipation of growth that is not realized as expected. Other factors that may cause Siemens’ results to deviate from expectations include developments in the financial markets, including fluctuations in interest and exchange rates (in particular in relation to the U.S. dollar), in commodity and equity prices, in debt prices (credit spreads) and in the value of financial assets generally. Any changes in interest rates or other assumptions used in calculating obligations for pension plans and similar commitments may impact Siemens’ defined benefit obligations and the anticipated performance of pension plan assets resulting in unexpected changes in the funded status of Siemens’ pension and other post-employment benefit plans. Any increase in market volatility, further deterioration in the capital markets, decline in the conditions for the credit business, continued uncertainty related to the subprime, financial market and liquidity crises, or fluctuations in the future financial performance of the major industries served by Siemens may have unexpected effects on Siemens’ results. Furthermore, Siemens faces risks and uncertainties in connection with: disposing of business activities, certain strategic reorientation measures; the performance of its equity interests and strategic alliances; the challenge of integrating major acquisitions, implementing joint ventures and other significant portfolio measures; the introduction of competing products or technologies by other companies or market entries by new competitors; changing competitive dynamics (particularly in developing markets); the risk that new products or services will not be accepted by customers targeted by Siemens; changes in business strategy; the outcome of pending investigations, legal proceedings and actions resulting from the findings of, or related to the subject matter of, such investigations; the potential impact of such investigations and proceedings on Siemens’ business, including its relationships with governments and other customers; the potential impact of such matters on Siemens’ financial statements, and various other factors. More detailed information about certain of the risk factors affecting Siemens is contained throughout this report and in Siemens’ other filings with the SEC, which are available on the Siemens website,, and on the SEC’s website, Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens neither intends to, nor assumes any obligation to, update or revise these forward-looking statements in light of developments which differ from those anticipated.

Reference Number: I20110641e


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