UniWagon increases production in Q1

Railcar builder United Wagon Company (UniWagon) manufactured 4,600 railcars in the first quarter of this year, a 51% increase compared to the same period of 2016. The production volume increased to meet the growing external demand for UniWagon’s railcars. The 1Q production figures are in line with the Holding’s annual production target of 18-20 thousand railcars.
In the first quarter, UniWagon’s product line was expanded to include a total of 42 railcar models and modifications. UniWagon further diversified its product line. The share of tank cars in the production pattern was raised to 4% as the production capacity increased and TikhvinChemMash received more orders. The share of flat cars grew to 3% owing to a greater production capacity and manufacture of timber flat cars by TikhvinSpetsMash.
In the reporting period, 70% of newly produced railcars were sold under direct contracts to third parties. The largest customers were State Transportation Leasing Company and United Grain Company. 30% of railcars were sold to RAIL1520, UniWagon’s leasing subsidiary. UniWagon also continued supplying timber flat cars to Locotrans and entered into tank car supply contracts with KuibyshevAzot, UGMK and Metafrax.

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