Dive Brief:
- Pittsburgh-based Wabtec Corp. has agreed to supply 300 heavy-haul locomotives to Kazakhstan’s national railway over the next decade, supporting U.S. manufacturing jobs in Texas and Pennsylvania, the Commerce Department said Monday.
- As part of the $4.2 billion contract, Wabtec will deliver Evolution Series 44ACi locomotive kits to the Kazakhstan Temir Zholy railway group, as well as provide long-term service support for the nation’s new and existing railroad fleet.
- President Donald Trump called it “the largest Railroad Equipment Purchase in History” on his social media platform Truth Social. The deal is expected to support 11,000 U.S. jobs, according to a news release.
Dive Insight:
The agreement was signed on Monday following a phone call between President Trump and Kazakhstan President Kassym-Jomart Tokayev, who traveled to New York City this week to discuss issues around bilateral trade and economic cooperation with the administration.
As part of his visit, Tokayev signed a deal affirming Wabtec as a key locomotive supplier for Kazakhstan’s railway industry. In 2009, Wabtec opened a locomotive assembly plant in Astana, Kazakhstan, and has since invested more than $230 million in the country. The factory has also since produced more than 600 locomotives for the KTZ and for export.
A spokesperson confirmed via email that production will involve “multiple plants,” with kits coming from the U.S. and final assembly taking place in Astana. Wabtec recognized the locomotive contract with Kazakhstan as the largest in company history. Earlier this year, it secured a service contract in the country worth $299 million.
Commerce Secretary Howard Lutnick, who was present for the signing and discussions with Tokayev, touted the deal as a “huge success story” on X, posting that it supports thousands of jobs in Texas and Pennsylvania and strengthens the U.S.-Kazakhstan relationship. No job creation details were disclosed.
Earlier this summer, the U.S. implemented tariffs on Kazakhstan goods, sparking tensions between the two countries. In a July letter to Trump, Tokayev said he was ready to have a “constructive dialogue” aimed at finding a balanced solution to the trade issues.
Wabtec has eight U.S. manufacturing facilities, with its largest locations in Erie, Pennsylvania, and Fort Worth, Texas, according to the company’s latest annual report. In 2019, the company merged with GE Transportation, doubling its annual revenue to become a Fortune 500 company. Wabtec generated $10.4 billion in sales last year. It also has nine global manufacturing sites, including in India, Mexico and the U.K.
