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10 December 2018 Sinara-Transport Machines Holding Announces Completion of Purchasing Majority Interest in RPM Group

Kalugaputmash (KPM, part of the Sinara-Transport Machines (STM) Holding) acquired 75% minus two shares of RPM Group (Kaluga Plant Remputmash). Earlier, in accordance with Order of the Government of the Russian Federation dated February 11, 2014 No. 174-r and Decision of the Board of Directors of Russian Railways dated May 24, 2018, Russian Railways held a tender to sell a majority interest.

Track Machinery Division of Sinara-Transport Machines Holding is being formed on the basis of Kalugaputmash and RPM Group assets. This will allow STM to become a leader in the market of track engineering in Russia, to meet demands of Russian Railways in production and maintenance of track equipment, and to intensify export supplies.

RPM Group includes eight plants specializing in production and overhaul of track equipment, and 45 service centers located along the entire railway from Kaliningrad to Sakhalin.

“Acquisition of a majority interest in RPM Group is a landmark event in the railway track engineering market. Joining efforts of KPM and RPM companies with advanced technologies will provide a powerful synergistic effect and momentum for creating innovative machines that will be in demand during implementation of major infrastructure projects of Russian Railways,” Director General of STM Viktor Lesh said.

Development of STM Holding Track Machinery Division means not only expanding the product line, but also obtaining new competencies in the field of its after-sales maintenance. This will allow introducing a new approach to supply of track equipment with fulfillment of life cycle contracts terms (LCC). “A year ago, STM Holding was one of the first to conclude LCC on locomotives and plans to apply this promising and economically reasonable approach to supply of track machines. Well-developed network of service centers and track equipment repair plants will allow the new STM division to fulfill all the terms of LCC,” Viktor Lesh said.