The memorandum is expected to lead to the establishment of a joint-venture company between KTZ and the Alstom-TMH consortium which will manufacture locomotives in Kazakhstan. The announcement follows a tender issued by KTZ in late 2009 for the supply of 200 electric locomotives, predominately intended for the Kazakh domestic market, although they will also be exported to other countries within the 1520mm gauge zone.

As part of their strategic partnership, Alstom and Transmashholding have set up Technology Relsogovo Transport (TRT) a joint venture company that will design new rolling stock models intended for operation in the CIS region.

The first jointly-manufactured product will be the EP-20 a dual-voltage electric passenger locomotive capable of speeds up to 200km/h. Russian Railways (RZD) has ordered 200 of the EP-20s with both companies currently working to set up locomotive production at the TMH factory in Novotcherkassk, Russia.