The memorandum of understanding was signed at this week's International Economic Forum in St Petersburg by Mr Andrey Bokarev, president of TMH and Tognum CEO Mr Joachim Coers.

The partners will invest around €80m in the project and planning for the new plant is due to be completed by November with the aim of starting production by December 2015. The facility will assemble, test, and finish MTU Series 4000 engines (pictured) and gensets.

The joint venture, which will be named MTU Transmashholding Diesel Technologies, will also establish a joint engineering centre for diesel engine development in Kolomna.