Transmashholding (TMH) has closed the deal for the acquisition of Hungary’s Dunakeszi Járműjavító Ltd (DJJ) rail business and industrial site.
The financial details of the transaction have not been revealed.
From 9 June, TMH Hungary Invest owns a 90% stake in the DJJ business, including the plant and its 600 employees.
The DDJ management will be shifted to TMH Hungary, which will serve as a project management organisation.
In November 2019, the sales and purchase agreement for the 90% of shares was signed. MNV National Asset Management Agency and MAV Railways were the previous owners of the shares.
The Hungarian Government also approved the deal.
Last month, the national competition authority gave the clearance for the transaction, which marked the completion of the deal.
TMH CEO Kirill Lipa said: “The completion of DJJ acquisition represents a major step forward in our global expansion strategy. DJJ will be part of TMH, giving it significant opportunities to grow via its participation in national and international rail tenders.
“In a commitment to support Hungary’s export capabilities, TMH brings to the site of Dunakeszi the largest ever railway manufacturing project in the history of Hungary: the production and supply of almost 680 railway passenger coaches for the Egyptian National Railways.”
In 2018, the Transmashholding-Hungary consortium secured a contract worth more than €1bn ($1.17bn) to supply passenger car trains to Egyptian National Railways (ENR).
TMH senior VP Terence Watson said: “TMH aims at becoming a market leader in Hungary and at serving the European railway market, ultimately creating in Dunakeszia rolling stock manufacturing and services centre for Central and Eastern Europe.
“We intend to implement a long-term upgrade programme to the site, building on the existing operations. TMH is committed to supporting Hungary’s economic growth, relying on local skills, transferring technology and know-how, and developing the local supply chain to build a sustainable rail eco-system in the country.”
The technology and production transfer between the DJJ and TVZ factory in Russia will commence immediately. The second half of the coaches are produced in the Russian site.