Infrastructure Minister of Ukraine has held talks with the owners of Russia's Transmashholding, its director general, and the director general of Luhanskteplovoz, on setting up the production of freight locomotives in Luhansk, Infrastructure Minister Volodymyr Kozak said at a briefing in Kyiv on Wednesday.

"If the government decides to, we'll be able to start production of [freight] locomotives in Luhansk next year," he said.

The minister said that today freight locomotives are not made in Ukraine, and if their production is commenced in Luhansk, the local content level will be around 30%.

"In 2015, the local content level in production of DC locomotives will reach 90% and that for AC locomotives – 65%," the minister said.

Kozak said that by this time, around 20 Ukrainian enterprises involved in the production of the said locomotives are to increase production by 2-4 times.

"In 2015, we'll be able to achieve the production of 100 locomotives a year. Next week a decision on the sources of financing of the project will be made," he said.

Russia's Transmashholding is the owner of public joint-stock company Luhanskteplovoz.

Luhanskteplovoz produces mainline and shunting diesel locomotives, diesel and electric trains, trams, and spare parts for railway transport.

As reported, last year the company boosted production by over 70% on 2011, to 162 locomotive sections, which is 60 sections more than in 2011. Its net sales income grew by 97%, to UAH 1.694 billion.

The company expects that its net revenues in 2013 will reach over UAH 3 billion. This year the plant intends to produce 250 power sections of diesel locomotives.