14 Apr 2010 13:32

RKTM shareholders to set up railway operator to service BasEl companies

MOSCOW. April 14 (Interfax) - The owners of OJSC Russian Transport Machine-Building Corporation (RKTM) - OJSC Russian Machines and the owners of Mordovia Railway Car Building Corporation (VKM) - are setting up a railway operator called RKTM-Trans to provide services to the companies in the Basic Element holding, Russian Machines told Interfax.

One source said RKTM-Trans is expected to begin operational activity in June, but did not disclose which company owns how much in the new enterprise.

RKTM-Trans will start off with 6,000 railcars produced by RKTM companies.

RKTM is a joint enterprise between Russian Machines and the VKM shareholders set up in 2007. Its founders each own 50% in the JV. VKM paid for its stake with shares in Ruzayevsky Chemical Machine-Building Plant, along with a number of other companies it controls, including VKM Steel (Saransk).

The creation of RKTM-Trans is one of the key aspects of an socioeconomic cooperation agreement signed Tuesday by Basic Element General Director Oleg Deripaska and Mordovian President Nikolai Merkushkin. The agreement also encompasses RKTM's further development and cooperation in the completion of building a new metals complex at the VKM Steel casting plant, Basic Element said.

"More than three billion rubles has already been put into the project, and additional investments will come to more than two billion rubles," the company said in a statement. The new complex will be able to turn out 30,000 tonnes of heavy castings annually. Serial production is planned to begin before the end of this year.

"The creation of an owner and operator of rolling stock is what is needed for synergy between a railcar producer at RKTM and the ready and existing railway transport flows to subsidiary and partner enterprises within the perimeter of Basic Element," the statement says.