United Wagon Company wins status as supplier to Deutsche Bahn

Research and production corporation “United Wagon Company” (“UWC”, the Holding or the Company) (MOEX: UWGN), the leading builder of innovative railcars in the 1520-mm track gauge zone, has successfully passed a quality audit by Deutsche Bahn to act as supplier of freight cars to the German company. Deutsche Bahn is the largest railway operator in the European Union and the approval is a milestone in the development of UWC’s export strategy and expansion of its presence on the European market. UWC was assigned Q2 quality status based on the audit results.

The audit was carried out by specialists of Deutsche Bahn, who reviewed the quality management system at United Wagon Company and also at the All-Union Research and Development Centre for Transportation Technology (VNICTT) and the Tikhvin Freight Car Building Plant (TVSZ) which are both owned by UWC. The audit gave a high assessment of the processes used by UWC for the design and production of new freight cars models, quality assurance, warranty and service maintenance. In total, the audit covered more than 20 aspects of UWC’s business. The final score was calculated as the sum of scores for all criteria based on a 100-point scale and was presented as a 360-degree chart. The railway holding received scores in a range from 90 to 100 points on 18 counts and from 80 to 90 points on five counts.

In addition to the Deutsche Bahn audit, the Tikhvin Freight Car Building Plant has successfully passed certification to the EN 15085 Welding of Railway Vehicles and Components European standard. The certification audit was carried out by TÜV Rheinland, the German division of one of the world's leading certification bodies. Employees at TVSZ underwent additional training to prepare for certification to European standards. Certified activities include welding, non-destructive testing and the quality management system. Employees at TVSZ have obtained status as international specialists as a result of the audit.

Status as a Q2 supplier to Deutsche Bahn and the EN 15085 welding certificate create promising new opportunities for UWC on the European market.

Maxim Kuzemchenko, Deputy CEO for Business Development at UWC, says: "We view Deutsche Bahn as a strategic partner and look forward to successful cooperation. When we agreed to the audit, we understood that we would be tested to the most stringent quality standards in the railway industry. But we also knew that UWC can compete as an equal in international markets and deliver the range of products that operators need at high levels of quality. The status of a Q2 supplier for potential freight railcars projects gives independent confirmation of this fact. We hope that Deutsche Bahn's assessment will serve as a signal to the whole of the European market. UWC is now the only freight car manufacturer outside the European Union which has the right to supply cars to companies in Europe."

Jens Baselt, Quality Engineer at Deutsche Bahn, says: “We are happy to welcome UWC as our potential vendor. DB has been seeking partners that meet our criteria in terms of quality, security of supplies and pricing policy all over the world. The audit conducted at UWC let us expand our pool of potential vendors of freight cars and their components. During the audit, we saw a highly motivated company with modern advanced infrastructure. I feel that UWC meets every prerequisite for precise implementation of potential projects with Deutsche Bahn. We wish that the existing positive energy and the quality of UWC’s products become a solid basis for our successful partnership.”