Romanian rail manufacturer Softronic and LAC Holding signed on Monday a letter of intent on launching joint railways engine production in Hungary, news agency MTI informs. The two companies plan to set up a joint venture 51 percent owned by Softronic and 41 percent by LAC Holding.
The site for the Hungarian factory is planned to be completed by the end of 2015 and to produce the first jointly manufactured engine in 2016, according to Softronic CEO Ionel Ghita. „We expect significant demand for the good-quality, favorable-price engines in East Europe and in North Africa,” LAC Holding chairman-CEO László Horváth said in his turn.
He put the price of the future domestically produced engine to about USD 2.5 – 3 million. The joint company would assemble the parts supplied by Softronic first, and will manufacture the engines in Hungary at a later stage. They would sell 2-3 engines in the first year, in 2016.
Softronic company is known for the EUR 5 million investment in developing Romanian’s fist locally manufactured electric train named Hyperion, being the first to have low floor and asynchronous traction motors, a project started 2 years ago.
In 2009, Softronic launched the first electric locomotive manufactured in Romania after 1990 (Phoenix 5100kW). Softronic is member of Inovatrans cluster, based in Craiova, listing among its main projects Laboratory Development CD in the modernization and construction of electric locomotives – increasing access to RDI (2009 – 2011), Modernization of Romanian manufacturing electric locomotives type LE 5100 kW and Introducing the Regional Electric Train – TER.