The United Metallurgical Company (AO OMK, Moscow) announces its winning bid to enter into a
contract to purchase stock (100% less 1 share) in the AO VRK-3 Railway Car Repair Company currently
owned by OAO RZD. This will enable OMK to create a presence in the market for railway car repair
services, deal directly with rolling stock owners while developing railway car and wheelset repair
Based on the outcomes of an auction held using the VTB platform, the award went to OOO
BusnessOptima, an OMK company. The transaction is scheduled to close no later than December 2019.
OMK has a train wheel manufacturing facility, makes its own steel and hot-rolled steel goods, has a
casting facility, and is a manufacturer of springs and specialized engineering items. In addition, OMK has
the best set of skills of any other metal maker in the world in developing its manufacturing culture and
efficiency. Given all this and thanks to the professionalism of the VRK-3 team, the company will provide
a high level-railway car repair service.
"Purchasing a railway car repair company is a logical step in OMK's client-centric universe and vertical
integration. We are able to supply our facilities' product to the railway transportation market while the
high level of production itself will enable us to offer high-quality quick turn-around service to railway car
owners in Russia", said OMK Governance Board Chair Natalya Eremina commenting on the acquisition.
The Railway Car Repair Joint-Stock Company 3 is a major federal maintenance and service chain. It is a
leader in the market for depot-based and capital repairs and maintenance of train cars, rolling stock
revamping and maintenance. AO VRK-3 has the capacity to repair and maintain over 100,000 cars a year.
The company includes 42 individual facilities: 35 repair depots, 5 wheel repair shops and 2 railway car
operators located in 25 of the Russian Federation's constituent entities and on federal railway routes
over 80,000 kilometers long.
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