Greenbrier’s European subsidiary, Greenbrier-AstraRail, has agreed to acquire nearly 68% ownership stake in Turkish railcar builder Rayvag Vagon Sanayi ve Ticaret (Rayvag) for an undisclosed sum.
The acquisition marks Greenbrier’s entrance in the growing Turkish rail market.
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Established in 2007, Rayvag offers maintenance services for railcars and manufactures bogies and spare parts for railcars in the region.
Following the acquisition, Rayvag managing director Asim Suzen will retain a 32% equity interest in the business and continue to hold his position.
The company believes that the addition of Rayvag to Greenbrier Europe, which also comprises Poland’s WagonySwidnica and Romania’s AstraRail, will help extend its continental reach.
Greenbrier expects that the deal will help it to acquire new railcar customers in Europe and better serve its existing customers operating on the nearly 5,500-mile Turkish rail system.
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By GlobalDataGreenbrier chairman and CEO William Furman said: “Greenbrier sees Turkey and the Mediterranean region as a key corridor within the global freight railway system.
“Expansion into Turkey is a logical extension of our market-leading Greenbrier Europe operation.
“Turkey broadens Greenbrier’s presence in the region where we are successfully working with Saudi Railway Company (SAR) on key rail projects and are planning to partner with other Gulf Cooperation Countries on railway supply needs in those nations.
“We look forward to growing our presence in the Turkish rail market and the opportunity to be a part of the industry’s growth within the region.”
Local media report that the Turkish Government is planning to invest more than $23.5bn in rail infrastructure projects by 2023, as rail freight volumes are expected to register an increase of 65 million tonnes in the next five years.
