GE Scores Major Indonesia Locomotive Sale
Los Angeles, CA – GE Transportation has signed a $94.3 million contract to supply 50 freight locomotives to Indonesian railway PTKAI.
The locomotives to be delivered in 2015 and 2016 will be built at the company’s manufacturing plant in Lawrence Park Township, Pennsylvania.
PTKAI is the national railway of Indonesia and operates a fleet of more than 300 locomotives that provide both freight and passenger services on the islands of Java and Sumatra.
The railroad reportedly plans to upgrade and modernize the nation’s rail infrastructure to better serve the country’s growing economy.
The General Electric-PTKAI deal was financed by a $94.3 million credit agreement reached with the U.S. Export-Import bank (EXIM).
The deal is expected to provide a significant boost to the region’s struggling economy.
One company that will gain from the PTKAI sale is Industrial Sales and Manufacturing Inc. (ISM), a small business headquartered in Erie, will supply numerous machined, fabricated and assembled components for the Indonesia-bound engines.
ISM fabricates, assembles, tests, and finishes products found around the world in applications ranging from transportation, mining, agriculture, and recreation to medical devices and renewable energy.
“As a contract manufacturer supplying original equipment manufacturers, Ex-Im Bank’s support of global customers of companies like GE is vital to our own company, our community, and the stability and growth of the broader economy in the United States,” said ISM President, Jim Rutkowski, Jr.
Earlier this year, a $563 million loan guarantee from EXIM helped finance the sale of 233 locomotives to South Africa’s TransNet. Delivery of those locomotives is expected to begin in mid-2015.
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