Romanian locomotive manufacturer Softronic, based in Craiova, and Hungarian company LAC Holding have signed a letter of intent to build a locomotive factory in Hungary, according to the Budapest Business Journal.

Softronic and LAC will build the factory by the end of next year, and will begin locomotive production a year later.

In the first year, the plant will produce two to three locomotives, then the annual production will increase to over 10 units, according to a LAC press release.

Softronic will hold a 51% stake in the new company. Softronic general director Ionel Ghita estimates a price of USD 2.5-3 million for the locomotives produced in Hungary, below the market price of about USD 4-4.5 million.

editor@romania-insider.com