PJSC “Research and production corporation “United Wagon Company” (“RPC UWC” or the Holding) (MOEX: UWGN), the leader in innovative railcar building in the 1520 mm track gauge zone, announces its operational results for 1Q 2017.
The 1Q production totalled 4.6 thousand railcars, a 51% increase compared to the same period of 2016. The production volume increased to meet the growing external demand for RPC UWC’s railcars. The 1Q production figures are in line with the Holding’s annual production target of 18-20 thousand railcars.
In the reporting period, RPC UWC diversified further its product line. The share of tank cars in the production pattern was raised to 4% as the production capacity increased and “TikhvinChemMash” received more orders. The share of flat cars grew to 3% owing to a greater production capacity and manufacture of timber flat cars by “TikhvinSpetsMash”.
In the first quarter, RPC UWC’s product line was expanded to include a total 42 railcar models and modifications. The 80-ft container flat car and box car with a body volume of 175 m3 were successfully certified.
In the reporting period, 70% of newly produced railcars were sold under direct contracts to third parties. The largest customers were State Transportation Leasing Company and United Grain Company. Besides that RPC UWC continued supplying timber flat cars to Locotrans and entered into tank car supply contracts with KuibyshevAzot, UGMK and Metafrax.
30% of railcars were sold to RAIL1520, RPC UWC’s leasing subsidiary. The company purchased these railcars to substitute 3 thousand standard railcars sold from its own fleet to Federal Freight in the reporting period. 6.8 thousand of the Holding’s owned railcars were purchased by State Transportation Leasing Company. UWC had been accumulating in its fleet the railcars intended for the sale since 4Q 2016. The resulting size of UWC's own fleet totalled 15 thousand railcars at the end of the reporting period.
In the reporting quarter, PRC UWC opened 2 new service centres of category II. As at the end of the period, the Holding’s service network included a total 60 service and 6 training centres.