ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it has concluded an agreement with Kryukovsky Railway Car Building Works, a major manufacturer of railroad rolling stock in the Ukraine (location: Kremenchuk, Ukraine; Mr. Evgeniy Khvorost, Chairman of the board; hereinafter “Kryukov”), on October 25, 2012, to supply machinery for 95 subway cars. The machinery, namely electrical items and brake systems, will mainly be supplied by Japanese companies including Mitsubishi Electric Corporation and Fuji Electric Co., Ltd. The contract value amounts to around 41 million euro (around 4.2 billion yen), with a series of deliveries to begin in June of next year.

The machinery slated for delivery will be used for Kryukov’s supply of subway cars to Kyivsky Metropoliten, a municipal subway company in Kiev (hereinafter “Kiev Metro”), under an agreement signed for a delivery of 95 subway cars.

The project is to be executed as a contractual business linked to the GIS (Green Investment Scheme) (*) signed between the New Energy and Industrial Technology Development Organization, an independent administrative agency (hereinafter “NEDO”), and the State Environmental Investment Agency of Ukraine (hereinafter “SEIA”). It is to be the first of its kind involving the supply of railroad rolling stock. Assigned Amount Units (AAU), which represent the amount allowed for greenhouse emissions that NEDO has paid to SEIA, will be applied to make the contractual payments for this project.

Kiev Metro holds a vast quantity of rolling stock that is about 40 to 50 years old and was manufactured during the former Soviet era, and thus, an upgrade had become an urgent task. With this project, existing rolling stock that uses direct current power will be replaced with that which uses alternating current with an VVVF inverter control. Electric power consumption will be reduced by around 35% with the use of regenerative electric power. By adopting Japan’s cutting-edge technology, ITOCHU will prolong the life of the rolling stock and assist in the reduction of electric power consumption along with CO2 emissions, thereby contributing to the progress in Ukraine’s energy-saving strategy.

• GIS: (Green Investment Scheme)
  The scheme refers to the portion of international emissions trading under Article 17 of the Kyoto Protocol that designates the use of funds related to transfers of AAU, etc. for reductions in greenhouse gas emissions and other environmental strategies.

Kryukov: Overview