UWC and Karabashmed agree on supply of tank cars for sulfuric acid

Research and production corporation “United Wagon Company” (UWC or the Holding) (MOEX: UWGN) will supply the copper smelting company Karabashmed (part of the Russian Copper Company) with tank cars on a bogie with increased axle load for the transportation of sulfuric acid. Fifty cars will be shipped before the end of this year.

The model 15-9545 tank cars for the transportation of sulfuric acid are characterized by improved parameters in comparison with their analogues on the market. The increased capacity of 77 tons and enlarged tank volume of 44 m3 allow for the transportation of up to 10% more cargo. As a result, the required fleet size is reduced: 89 UWC tank cars can transport as much cargo as 100 standard models.

The construction design of the 15-9545 tank car uses a tank with “broken” axis, ensuring maximum draining. And thanks to the bogie with an increased axel load of 25 tf, the cost of the life cycle of the car is more than three times lower, with reduced uncoupling for repairs and extended overhaul periods (800,000 km or 8 years for the UWC tank cars, compared with 210,000 km or 2 years before the first depot repairs for standard analogues).

The 15-9545 model has been produced at the TikhvinChemMash — freight car building plant (part of UWC) since 2015.

Andrey Khanzhin, CEO at Karabashmed, said: “Our company is carrying out a large-scale programme of ecological and technological modernization. Since 2004, when the Karabashmed plant became part of the RCC, the chemical and metallurgical complex has been undergoing reconstruction, which includes the commissioning of more powerful gas-cleaning equipment, the construction of additional facilities for the disposal of smelter fumes, the introduction of closed water cycle and other innovations. The Russian Copper Company has invested more than 18 billion roubles in Karabashmed. And the programme is not yet complete. The company cares about the quality of its products, the safety of production and the reliability of its transportation fleet, including freight cars. We hope that the new tanks will enable us to achieve this objective.”

According to experts, the demand for sulfuric acid tanks will be high for the next few years. This is due to an annual increase in the freight base, as well as the replacement of Russia's outdated fleet. In 2017, the growth rate of sulfuric acid production was 4.1% of the natural volume of production, and in 2016 — 13.1%. In addition, PhosAgro, Acron, Shchekinoazot and other manufacturers have announced projects to increase their production capacity. Also, by the end of the year up to 10% of the current tank fleet may be removed from service, and decommissioning in the next five years may reach more than 15%.