Croatia's HZ Cargo, KEV in 14.4 mln kuna (1.9 mln euro) locomotives upgrade deal

The upgrade will enable HZ Cargo to use the locomotives for at least 14 more years, the company said in a statement.

The modernisation of the rolling stock of HZ Cargo is one of the company's strategic goals to improve its profitability.

The overhaul and modernisation of the first locomotive has to be finished within 12 months, and the upgrade of a second one should be finished two months later. Following that, HZ Cargo will have to overhaul 15 more locomotives.

KEV is a developer, manufacturer and repairer of railway vehicles and electric vehicle equipment. It is part of the Koncar Group, which offers turnkey construction of power plants, manufactures transformers, generators, motors, switchgear and other equipment for power generation, transmission and distribution, as well as tramcars, electric multiple units, railway plants and accompanying equipment and systems.

Koncar's shares [ZSE:KOEI] traded flat at flat at 925 kuna on Tuesday afternoon on the Zagreb bourse.

(1 euro = 7.541 kuna)