TRANSMASH Holding and Knorr-Bremse signed a letter of intent last month for the creation of an equally-owned joint venture in central Russia which will manufacture and service rail braking systems for markets across the CIS countries.

Transmash is currently expanding its production capacity (RG 4.07 p231), and Knorr-Bremse said the agreement is an 'important milestone' marking the first time it will supply its modern rail technology and expertise to Russia. Knorr-Bremse had previously signed a deal with Kamaz covering the CIS road vehicle market.

Knorr-Bremse reported a 13·8% increase in sales to €3?12bn in 2006, with the rail sector growing 8·4% to €1·17bn. China showed 'dynamic growth,' and a new plant will open shortly in Suzhou, but only 'moderate growth' was seen Europe during 2006.

• After delays dues to legal disputes (RG 11.07 p748), Transmash Holding has been given clearance for its purchase of a 76% stake in locomotive builder Luganskteplovoz under the Ukrainian government's privatisation process. The deal is worth a reported US$58m. Transmash is also undertaking a restructuring, merging a number of subsidiaries with stakes in Bryansk Engineering, Bezhitsk Steel Foundary and Penzadieselmash.