Uralvagonzavod, Zarechnaya to Set up JV

19 February 2013 (09:20)

February 19, 2013. Uralvagonzavod Scientific & Production Corporation and a group of companies headed by Zarechnaya Coal Company (of which a Mr. Nusenkis, a Russian entrepreneur, is a proprietor) announced they are about to set up a joint venture called Russian Industrial Corporation.

The prospective JV will probably comprise some of Uralvagonzavod Corporation’s assets; the corporation will also get some stakes in Zarechnaya Coal Company, Yurga Machine-Building Plant, Germany-based Esser, the Czech Republic-based T-machinery, U-Trans Transportation Company, and the Baltic Coal Terminal.

The idea behind uniting these assets is making the produce more competitive due to cutting costs through a synergizing effect and entering the global machine-building products market.

The creation of Russian Industrial Corporation will mean that Uralvagonzavod will be able to include coal production and processing in the sphere of its business interests and to reinforce its transportation and logistics potential as well as strengthen its position on the heavy-duty machine building market thanks to winning a share of the mining equipment segment (this is estimated at approximately 30 bn RUR a year).

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