CANTON, Ohio, March 24, 2014 /PRNewswire/ -- The Timken
Company (NYSE: TKR; www.timken.com) has entered into an agreement
with United Wagon Company (UWC), a leader in building,
leasing, engineering and servicing freight cars in
Russia, to establish a joint
venture (JV) to manufacture Timken® AP-2™ rail bearings
in Russia. The JV will advance the
safety, reliability and efficiency of the local rail industry,
equipping customers' freight cars with premium Timken bearings. The
JV is contingent upon various regulatory approvals and other
commercial and customary conditions.
"Leveraging the expertise Timken provides as a global leader in
high-performance bearing design is critical to our strategy to
deliver modern, high-quality freight cars to our customers in
Russia and the Commonwealth of
Independent States," said Roman Savushkin, chief executive officer
of UWC, based in Moscow.
As part of the agreement, Timken and UWC will establish
dedicated manufacturing capacity, with construction expected to
start within the next several months.
This JV expands upon an established relationship between the two
companies, which was formalized in 2013 with a strategic
partnership agreement covering technical and design support and an
initial supply of Timken AP-2 bearings to UWC.
"The Russian and CIS rail markets present an incredible growth
opportunity for Timken as the region is rapidly modernizing its
fleet to support its expanding economy," said Brian Ruel, Timken vice president for rail, off
highway and light vehicle systems.
The agreement provides both companies a strategic opportunity to
capitalize on a surge in demand as the industry advances from using
cylindrical roller bearings on freight car axles to the more
efficient, reliable cartridge tapered roller bearing Timken
originally designed for the rail industry. Russia expects to acquire nearly one million
new freight cars by 2030 as part of an aggressive investment
program to renew and upgrade its rolling stock.
"Timken is well-established in delivering engineering solutions
for demanding environments like Russia, where the terrain and climate can be
rugged," Ruel said. "Our AP-2 rail bearings carry the heaviest
loads in the world, in the harshest of conditions. Together with
UWC, we will set a new standard of performance for the Russian and
CIS markets."
About United Wagon Company
United Wagon Company is a leading Russian company that
manufactures, operates leases, engineers and maintains modern
freight cars. UWC was incorporated in 2012 to manage Tikhvin
Freight Car Building Plant (Leningrad region) and RAIL1520, a
rolling stock leasing company. UWC's annual production capacity is
13,000 freight cars and 30,000 car sets. The company's owned
current fleet is more than 11,000 freight cars.
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com), a global bearing
designer and manufacturer, applies its deep knowledge of materials,
friction management and power transmission to improve the
reliability and efficiency of industrial machinery and equipment
all around the world. The company engineers, manufactures and
markets mechanical components and high-performance steel.
Timken® bearings, engineered steel bars and tubes—as
well as transmissions, gearboxes, chain, related products and
services—support diversified markets worldwide. With sales of
$4.3 billion in 2013 and
approximately 19,000 people operating from 28 countries, Timken
makes the world more productive and keeps industry in motion.
Media Contact:
Pat
Burnham
Global Media Relations
1835 Dueber Avenue, S.W.
Canton, OH 44706-0927
U.S.A.
Telephone: (330)471-3514
pat.burnham@timken.com
Investor Contact:
Steve Tschiegg
Director – Capital Markets & Investor Relations
1835 Dueber Avenue, S.W.
Canton, OH 44706-0927
U.S.A.
Telephone: (330)471-7446
steve.tschiegg@timken.com
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SOURCE The Timken Company