German state rail operator Deutsche Bahn said on Wednesday it had awarded its first-ever contract to Poland's PESA for up to 470 new locomotives for a total 1.2 billion euros ($1.6 billion).
"Deutsche Bahn has signed two framework agreements with Polish manufacturer PESA (Pojazdy Szynowe PESA Bydgoszcz Spolka Akcyjna) regarding the possible delivery of up to 470 diesel locomotives," the German company said in a statement.
"The possible investment volume is up to 1.2 billion euros," with the locomotives to be delivered up until the end of 2018, it said.
"It is Deutsche Bahn's first-ever major contract with PESA on the supply of rail vehicles," said the head of the German group's infrastructure and technical division, Volker Kefer.
Deutsche Bahn said the contracts had been drawn up in such a way as to afford the maximum possible flexibility with regard to the size and power of the trains ordered.
PESA supplies locomotives for the Italian, Ukrainian and Lithuanian railways, employs a workforce of 3,500 and is based in Bydgoszcz, Deutsche Bahn said.