TikhvinChemMash: Prize-Winner of RSPP Competition

As part of the Russian Business Week, the Russian Union of Industrialists and Entrepreneurs (RSPP) reviewed the results of the Russian Business Leaders: Dynamics and Responsibility 2017 contest. TikhvinChemMash (part of the railway holding United Wagon Company) has been named the winner of the Best Import Substitution Project nomination.

TikhvinChemMash, the modern import substitution manufacture of new generation tank cars, was launched as a greenfield project. The hi-tech plant was built within an extremely short period: only 2 years.

Today the plant produces 15 tank car models and modifications for a wide range of chemical freights: sulfuric acid, caustic soda, methanol, ammonia, formalin, molten sulfur, concentrated nitric acid, ethanol, etc. TikhvinChemMash tank cars are used to deliver freights for manufacturing and transport companies: GazpromTrans, URALCHEM, KuibyshevAzot, Shchekinoazot, PhosAgro, Middle Ural Copper Smelting Plant, Bashkhim, Togliattyazot, Rosspirtprom, Metafrax, Khimprom, Ilim Group, BASHKHIM Group, Svyatogor, VTG and others. Compared to old car types, tank cars manufactured by TikhvinChemMash can carry twice as much cargo, are exceptionally safe in transporting hazardous substances and distinguished by a variety of innovative design solutions. These railcars have increased carrying capacities and larger tanks, which allow to load up to 9 extra tons of freight into each car. As a result, the shipper significantly cuts the freight transportation costs, whereas the Russian Railways saves on locomotive traction. Another competitive edge of the cars is longer operating periods between overhauls (8 years or 800,000 km). For comparison, it is four times lower for standard cars, which markedly pushes up the car ownership costs.

The manufacture was backed by the Ministry of Economic Development of the Russian Federation and Industrial Development Fund; it also received the State guarantee from the Ministry of Finance of the Russian Federation.

The bid of TikhvinChemMash was estimated using a number of criteria, including the share in the import substitution market, the level of localization, the contribution to implementing “The Development Strategy of Russian Railways for the Period until 2030”, as well as the positive impact upon the related sectors, should the project be brought to fruition.

Over 270 companies had taken part in the prestigious RSPP competition by the end 2017, with 20 nominees competing for the Best Import Substitution Project award. The competition was called to identify dynamic companies based on their socioeconomic performance and to assist their sustainable development, which is in line with long-term economic interests of Russia.