First rolling stock facility of Transmashholding in European Union
Russian manufacturing group Transmashholding has acquired Dunakeszi Járműjavító, a Hungarian rolling stock plant. It is the first TMH’s facility in the European Union. The Russian holding plans to turn the Hungarian plant into a rolling stock manufacturing and service centre for Central and Eastern Europe.
The Russian manufacturing group has been thinking about the acquisition of DJJ from 2016. On Tuesday, 9 June, the dream has come true as the Hungarian authorities had approved the deal at the of May. TMH purchased 90 per cent of DJJ’s shares via its subsidiary TMH Hungary Invest. The remaining 10 per cent are still owned by the employees.
It is the first acquisition for the Russian holding in the EU. “TMH aims at becoming a market leader in Hungary and at serving the European railway market, ultimately creating in Dunakeszi a rolling stock manufacturing and service centre for Central and Eastern Europe,” Terence Watson, Europe Senior Vice President at TMH International, explained. According to him, the company plans to upgrade equipment at DJJ and extend its capabilities.
Dunakeszi Járműjavító (DJJ) is one of the largest rolling stock companies in Hungary with extensive experience. The facility was established in 1911 as a workshop. For many years, it was working as a key maintenance plant for Hungarian State Railways (MÁV). Since 1992 DJJ has got through the numerous transformations including decade-long incorporation into Bombardier Transportation. Before the deal with Transmashholding (TMH), the Hungarian plant was functioning as a state-owned contractor for both rolling stock maintenance and assembling operations from a wide range of customers.
Last year TMH and DJJ began a joint project for producing passenger carriages for the Egyptian National Railways (ENR). In September 2018 the Russian group won a big contract from ENR, which is worth at 1 billion euros. For this amount, TMH will produce 1,300 passenger carriages to Egypt. Half of them will be manufactured at Dunakeszi Járműjavító, another portion will be assembled at Tver Carriage Works (TVZ), a plant of Transmashholding in Russia. TVZ has already delivered the first carriages to Egypt. DJJ will supply the first batch of carriages in the fourth quarter of the current year.
“The completion of DJJ acquisition represents a major step forward in our global expansion strategy. DJJ will be part of TMH, giving it significant opportunities to grow via its participation in national and international rail tenders,” CEO of TMH Kirill Lipa said. It is worth to remind that the Transmashholding opened its own plant in South Africa. In addition, TMH owns two facilities in Kazakhstan: JSC Lokomotiv Kurastyru Zauyty (jointly with GE Transportation) and Tulpar.
The group has eight rolling stock plants in Russia: Bryansk Engineering Plant, Demikhovsky Engineering Plant, Kolomensky Zavod (Kolomna Locomotive Works), Metrowagonmash, Novocherkassk Electric Locomotive Plant, Oktyabrsky Electric Railway Car Repair Plant, TramRus (the joint venture with Alstom) and Tver Carriage Works (TVZ).