CZECH REPUBLIC: Wagon manufacturer LOSTR has signed an agreement to produce Voith Turbo's Maxima diesel-hydraulic locomotives under licence.

The exclusive agreement signed on January 12 covers the central and eastern European markets excluding the former USSR. Voith will supply engines, transmissions and switch cabinets, while LOSTR will be responsible for other parts, final assembly and commissioning. A new production hall will be built at its Louny plant.

LOSTR director Radek Rybácek said the first loco will be completed later this year, and commercial production of 'several tens' of locomotives will begin in 2011. 'Production of other types of locomotives is being negotiated for the future', he said.