16 November 2017
The decision is driven by the need to curtail a negative effect on the Group from the shortage of rolling stock in Ukraine, which resulted, inter alia, from lower turnover of rail cars of Ukraine’s Railways in 2012-2017.
The plan is to supply the first lot of 800 open wagons by the end of 2017 and the rest in the first six months of 2018.
Metinvest’s entities need around 18,500 open wagons to deliver raw materials and dispatch their finished products. Through the purchase of the new rolling stock, the Group will increase its self-sufficiency in rail cars to 20%. About 50% of the needs will be covered by Metinvest Group’s strategic partner Lemtrans, LLC, and it is planned to cover other 30% of the needs primarily by the rolling stock of Ukrzaliznytsya (Ukraine’s Railways).