12 january 2012 | All
Meeting of the Investment Committee of Russian Railways OJSC
December 29, 2011 a meeting of the Investment Committee of Russian Railways OJSC was held to discuss the program of renovation and modernization of the railway equipment for the period 2012-2016. A large part of this program is devoted to the factories of RPM Group. This is the production of new track machines, and huge amounts of capital repairs.
— Renovation and modernization program for track equipment for the next five years was unanimously adopted by the Investment Committee of Russian Railways OJSC. This document provides for the purchase of track equipment through several sources. Following a public tender for the provision of financial services, a leasing agreement will be concluded between the preferred tenderer and Russian Railways OJSC. In turn, Kaluga Plant Remputmash will sign a long-term supply contract with the leasing company. Another part of the Program will be financed through the Investment component, similarly to past experience.
I would like to emphasize that in 2012 the scope of the Program adopted will exceed the annual output of track equipment supplied for the needs of Russian Railways OJSC in 2011, by more than two times. At the same time in 2013, the volumes of machines sold will increase exponentially. This is a serious technical and technological challenge for RPM Group, which we have to accept.
— Evgeny Kirillovich, what are the plans within the Program of renovation and modernization of the track equipment for RPM Group for the next 5 years concerning the output?
— In the next 5 years, the capacity utilization of plants of the RTM Group will be provided to the maximum. I think that in some way we will have to negotiate with third-party companies for cooperation. Now, we even have to refuse some customers: either they are asking to produce something non-standard — much fuss and no time and resources, or the price does not suit us. Not like it was previously — we were taking everything.
— But such a large-scale program of Russian Railways OJSC demands changes of our businesses, as well as a major technical upgrade.
— We started to solve the problems of modernization already in 2011. Our ideas and inputs were the basis of the Group’s investment program for RPM next three years. Its goal is to provide the level of technical capacity of the Group and sufficient for implementation of the program of Russian Railways OJSC, increasing the competitiveness of the company’s products by increasing the speed and flexibility, the level of product quality and customer service. Decisions we make must provide the technical basis of the break-even since 2012. Expected upgrade results will determine not only the ability to achieve current goals and needs, but will also allow the RPM Group to take up a position of a technology leader in the industry.
— Strategic partners of the Group in the technological direction: which companies are considered the most promising for cooperation for the new equipment production?
— According to the new positioning, RPM Group intends to develop cooperation with the world leading railway equipment manufacturers in order to create new technology, improve the quality and performance of products and to develop the sales markets. A successful collaboration is the one with the international manufacturers of track machines and equipment in 2011 — Plasser & Theurer, MFL, Geismar, DISAB. They ensure continued cooperation with RPM Group in the field of establishing cooperative production.
— Speaking about the prospects of the Group development for the next five years, we can not but tell at what stage the company is now, what economic results we had at the end of 2011?
— The final results are being formed now, but already now it can be noted that RPM Group managed the main objective set for 2011: fulfillment of its obligations to customers, the main of which is Russian Railways OJSC. It should be noted that, despite some difficulties, above all, the lack of funding, we managed to perform even stronger commitment in the form of additional corporate order of Russian Railways OJSC in the amount of 1.3 billion rubles, obtained in the middle of the year, and also substantially increased orders of independent buyers — from India, Kazakhstan, and Russian industrial companies.