United Wagon Company completes a deal on purchasing 100 % shares of NPC Springs
Railway holding United Wagon Company (UWC) has completed a deal on purchasing of 100% shares of NPC Springs from RUSNANO and Izhmash. Therefore, NPC Springs becomes a UWC's plant asset, specializing in production of high strength rail springs for Tikhvin Freight Car Building Plant (TVSZ). The deal value and IRR are not disclosed.
NPC Springs business strategy is to develop production of high quality components for innovative rail transport as the most promising and marketable segment. The total railway springs market in the CIS is up to 10 billion rubles.
The company plans to manufacture 15 thousand tonnes of springs for rolling stock to 2015 that allows equipping more than 30 thousand of rail cars annually.
NPC Springs production complex will provide Tikhvin Freight Car Building Plant with springs, which meet high maintenance requirements and design characteristics of innovative freight car bogie. Other rolling stock developers are also interested in Izhevsk springs, so United Wagon Company will get an additional competitive advantage in the market of high-tech transport engineering.
High demand will allow using production resources in the optimal way, reducing operating costs and improving the enterprise efficiency. Thus, further increasing scientific and technical potential of NPC Springs allows designing new samples and mastering other production segments.
Roman Savushkin, CEO at United Wagon Company: “We believe that synergy of our two enterprises’ innovations will help Tikhvin Freight Car Building Plant to continue implementation and production of new rolling stock types, and NPC Springs will take a leading position in the CIS market and outside”.
Dmitry Pimkin, Managing Director for Investment at RUSNANO: “The deal with UWC and sale of the shares to the serious strategic investor is a significant event for us and for NPC Springs. We are sure that innovations and competence of NPC Springs will be profitable for UWC and NPC Springs will be additional asset in the new owner’s portfolio. At the same time UWC is ready for business development that gives NPC Springs an opportunity to continue making unique solutions for transport at the new level.”
Dmitry Tarasov, CEO at NPC Springs: “For NPC Springs to be a part of railway holding UWC guarantees that production and technical potential of our enterprise will be achieved and claimed in full. We have common goal to provide market with efficient and high-quality railway products.