The deal, which was signed in November 2019, has been approved by the Hungarian Competition Authority (GVH), giving TMH a 90% share of the DJJ. Management of the company’s assets, including its manufacturing plant and 600-employee workforce will be transferred to TMH’s Hungarian subsidiary.

DJJ will serve as a major production centre for TMH, with partial manufacturing of rolling stock taking place at the facility before completion at the company’s TVZ facility in Tver, Russia.

To incorporate DJJ into this process, a transfer of technology and production between the two production facilities will begin immediately, with the first batch of coaches made at the DJJ plant expected in the fourth quarter of this year.

TMH is currently manufacturing 680 passenger coaches for the Egyptian National Railways (ENR) at the facility - a record contract in Hungarian rail manufacturing. The project is part of a wider €1bn contract awarded by ENR to TMH Hungary in 2018 to supply 1300 passenger coaches, for delivery by 2023.

“Transmashholding aims at becoming market leader in Hungary and at serving the European rail market, ultimately creating a rolling stock manufacturing and services centre for Central and Eastern Europe in Dunakeszi,” says Mr Terence Watson, senior vice president at TMH International. “We intend to implement a long-term upgrade programme to the site, building on the existing operations. TMH is committed to supporting Hungary’s economic growth, relying on local skills, transferring technology and know-how, and developing the local supply chain to build a sustainable rail eco-system for the country.”