Romania’s Softronic signed on Monday a letter of intent (LoI) on launching joint railways engine production in Hungary, news agency MTI reported. The two companies plan to set up a joint venture 51% owned by Softronic and 41% by LAC Holding.
They are seeking the site for the Hungarian plant, which is planned to be completed by the end of 2015, and produce the first jointly manufactured engine in 2016, Softronic CEO Ionel Ghita said. They expect significant demand for the good-quality, favorable-price engines in East Europe and in North Africa, according to LAC Holding chairman-CEO László Horváth (photo).
He put the price of the future domestically produced engine to about $2.5m-3m. They would assemble the parts supplied by Softronic first, and will manufacture the engines in Hungary at a later stage. They would sell 2-3 engines in the first year, in 2016. (Budapest Business Journal)