United Wagon Company and Industrial Investors Group to promote heavy-haul rail shipments
PJSC «Research and production corporation «United Wagon Company» («RPC UWC» or the Holding) (MOEX: UWGN), the market leader in innovative rolling stock building in the 1520 mm gauge area, reports the successful completion of the first stage of its acquisition of a shareholding in JSC “First Heavy Haul Company” established by Industrial Investors Group. RPC UWC sold to First Heavy Haul Company its 100% participatory interest in Vostok1520, a railway operator. At the next stage, the Holding is to acquire a 19.9% share in First Heavy Haul Company in exchange of the interest sold in the railway operator.
As a shareholder of First Heavy Haul Company, United Wagon Company will be involved in controlling the former, and will continue to sharpen its expertise in heavy haulage.
Along with Vostok1520 First Heavy Haul Company has also acquired Nitrokhimprom (LLC). As a result of the consolidation, First Heavy Haul Company has become the largest owner and operator of new generation freight cars with a fleet of more than 23 thousand units.
‘Vostok1520, incorporated by us, has successfully completed its goals of promoting new generation freight cars made in Tikhvin’, said Dmitry Bovykin, First Deputy CEO for General Management at United Wagon Company. - ‘Our freight cars have proved efficient in operation and are in a big demand in the market. Vostok1520 has grown to become Russia’s largest rail carrier shipping in heavy trains of up to 9 thousand tons. Amidst the ongoing recovery in the sector, UWC focuses on its core business - the development and manufacture of radically new freight cars with larger carrying capacities. We are also planning to expand our customer base both in the 1520 mm gauge area and in export markets, with direct sales being a priority’.
UWC is currently negotiating with the national railways of Africa, the Middle East and Latin America the opportunities to supply freight cars and their components to the said countries.
UWC intends to expand its product line, raising the number of its certified freight car models and modifications to 40 units before the year ends, and in 2018 - to 60 units.