JOHANNESBURG - Russian rail rolling stock manufacturer Transmashholding (TMH) on Thursday launched a R500 million investment, through newly-acquired subsidiary TMH Africa, to acquire a 45,000 square meter rail manufacturing facility.

TMH said the facility in Boksburg, east of Johannesburg, would be used to assemble, manufacture and service locomotives and other rolling stock for the African continent.

TMH chief executive Jerome Boyet said South Africa's rail sector had the largest rail network, the required skills set and suppliers to support manufacturing and related activity. 

"South Africa continues to be an attractive investment market because it is very stable and has a huge potential to grow into a big African and global market of choice," Boyet said.

TMH Africa is 70 percent owned by TMH International while black-economic empowerment partner MJISA has a 30 percent stake.

- African News Agency (ANA)