February 2, 2013
On Friday, General Electric's (NYSE: GE ) Transportation unit announced that it has signed a "memorandum of understanding" with Russian firms Locorail and Yakutia Railways aimed at exploring a "strategic relationship" for modernizing the latter's diesel-electric locomotive fleet.
The memorandum envisions that GE will sell at least 100 FDL engine kits to Yakutia Railways over a five-year term, train the companies' employees to maintain and service the engines, and supply tooling and equipment necessary for the engines' upkeep. However, at this time, no actual agreement to sell the engines has been signed.
Locorail is a Dutch consortium that specializes in building railroads. It is jointly owned by three construction companies -- France's VINCI Concessions, Belgium's Compagnie d'Entreprises CFE, and the Netherlands' BAM PPP. Yakutia Railways is a Russian railroad transportation company and a subsidiary of JSC Russian Railways.
More Expert Advice from The Motley Fool
For GE, the recent financial crisis struck a blow, but management took advantage of the market's dip to make strategic bets in energy. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric
, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events unfold during the year. To get started, click here now.