SIEGY Siemens AG (PK)

   By Friedrich Geiger 
 

FRANKFURT--Siemens AG (SIE.XE) and Russian Machines Corp. agreed Friday to establish a joint venture with the aim of building trains for Moscow's metro, the German industrial conglomerate said.

Siemens and the Russian engineering group want to bid as joint partners for a Moscow metro contract. The Russian capital wants to purchase more than 2,000 cars to modernize its metro fleet.

The joint venture, in which both partners will invest a total of 160 million euros ($217.8 million), is to be based in the region of Moscow and will employ up to 800 people. The metro contract is likely to be awarded to a bidder that produces locally, said Siemens.

Write to Friedrich Geiger at friedrich.geiger@wsj.com

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