United Wagon Company will acquire management of Tikhvin Freight Car Building Plant and RAIL1520 lessor
31.05.2012
United Wagon Company will acquire management of Tikhvin Freight Car Building Plant and RAIL1520 lessor
Moscow 31.05.2012 – ICT Group, one of Russia’s leading investment companies, and its shareholders are pleased to announce the launch of JSC United Wagon Company (UWC), a dedicated management company that has assumed management of operating lessor RAIL1520 and Tikhvin Freight Car Building Plant (Tikhvin Plant). Both RAIL1520 and Tikhvin Plant will remain stand-alone legal and business entities.
The strategic aim of United Wagon Company is to create an integrated railway services company comprising manufacturing, operating leasing, and parts supply to be subsequently complemented with in-house freight car repair, maintenance, and engineering capabilities.
At the current stage, United Wagon Company has taken the management responsibilities over the sales and marketing of the Tikhvin Plant products. RAIL1520 will become the main channel for the marketing of the freight cars produced at the Plant through long-term leasing or sales depending on the current market environment.
Roman Savushkin, Chief Executive Officer of United Wagon Company, commented: “I believe we have a real opportunity to become not only a market leader but also a key trend-setter in the railcar industry. The combination of freight car manufacturing plant and an operating lessor is unique for Russia and provides significant synergy, as UWC can rapidly respond to changes in the market environment, and maintain predictable earnings, while creating value on market volatility. We are planning grow further both organically and through value-adding acquisitions, and we look forward to the future with confidence.”
The Tikhvin Freight Car Building Plant is based on the industrial site near the town of Tikhvin in Russia’s Leningrad Region. The Plant was launched in 2012, and it produces four types of freight cars, designed by Starfire Engineering & Technologies on the basis of Barber S-2-R, a new generation bogie type with a 23.5t and 25t axle load. At its full capacity the Plant will produce around 13,000 new generation freight cars, 90,000 tonnes of railway castings and 65,000 wheel sets annually. Please see more information about Tikhvin Freight Car Building Plant on its website: www.tvsz.ru
RAIL1520 operating lessor was incorporated in 2011 and has become a fast growing operator in the market for long-term leasing of freight cars. The company’s fleet is currently 5,000 freight cars. Its customers are cargo-generating companies, particularly in the transport, chemical, metallurgy, coal and forestry industries, which require rolling stock to meet their transportation needs.
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