Following Siemens' win in a pre-Olympic tender last year, Prague Zličín–based railway car manufacturer Siemens Kolejová vozidla won a contract to deliver 46 light-rail cars to Turin to boost the city's transportation infrastructure for the games.

The company, which was on the brink of shutting down only four years ago, delivered the final train to Turin in late January.

"This is one of the most significant railway deals in this country, and it will positively affect the country's entire trade balance," said Viktorie Plívová, spokeswoman for the Czech Economic Chamber.

The 82 million euro deal ($98.4 million/2.3 billion Kč) is not only a prestigious assignment, it's a revolutionary project for Czech railway manufacturing, according to Petr Sedláček, spokesman for Siemens Czech Republic.

"The trains for Turin are the first fully automatic trains ever produced in this country," Sedláček said.

In contrast to the subway cars Siemens has made for the Prague metro, the trains for Turin don't need a driver. They will also run both above-ground and underground.

The company will also export the rail cars to three French towns: Toulouse, Rennes and Roissy-en-Brie. The prestige of providing the trains for the Turin Olympics will likely help the company win other contracts, Sedláček said.

Rising from the ashes

The Turin assignment is the most recent example of the turnaround story behind Siemens Kolejová vozidla.

Previously owned by Czech engineering group ČKD, Siemens Kolejová vozidla used to make trams, not railway cars. A lack of orders, however, drove the company to bankruptcy in 2001. Siemens bought it that year for 750 million Kč ($3.2 million), saving 800 jobs.

Siemens' decision to begin producing railway cars essentially saved the company. Siemens Kolejová vozidla now exports to countries throughout Western Europe and has boosted its staff to 1,260 people.

The company's growth has trickled down the economic ladder, creating lucrative contracts for smaller companies. For example, Czech companies made the floors for the Turin trains.

Other deals in the works

Siemens Kolejová vozidla's recent success hasn't gone unnoticed. In early January Swiss railway operator Schweizer Bundesbahn signed a contract with the Zličín unit for the production of 25 modern electric trains. The deal is worth 447 million Swiss francs ($342.5 million/8.1 billion Kč).

Although other manufacturers will provide components for the Swiss trains, the majority of the work will be done in Zličín, pointing up the reputation the unit has built over the past few years, Sedláček said.

"This is the first time in 10 years that Siemens has won a tender in Switzerland, and the fact that we were given the assignment speaks for itself," he said.

Siemens is also considering whether to employ the Zličín unit in a contract with Spanish railways Renfe AVE. Siemens won a bid to provide the company with 16 high-speed trains worth approximately 12 billion Kč.

Siemens Kolejová vozidla manufactured the carriage frames for the prototype that was delivered to Spain last year, but its mother company has not decided where the high-speed trains will be manufactured.

Opportunity in Prague

In the Czech Republic, Siemens Kolejová vozidla counts Czech Railways and the Prague metro system among its customers, and it plans to continue cooperating with the two.

The company has supplied the metro with 47 new trains in the past several years, following the decision to replace the Russian cars that had been running the tracks for years.

Siemens sensed another major opportunity when Prague City Hall announced a project Jan. 17 to extend the metro to Ruzyně Airport in Prague 6 and to Písnice in Prague 4. The new lines should open in 2012. The project would cost around 42 billion Kč to equip the metro with a light-rail system and 44 billion Kč to build further underground lines.