Striving to enhance cooperation with the largest Russian producer of transport machines, VTB Bank has set a RUB 6.5 billion credit limit to CJSC Transmashholding.
The loan opens a window of opportunity for the company to finance its current and investment needs using a wide range of instruments applicable in the global banking practice.
Partnership relations between VTB and Transmashholding have been developing since 2002 when the company was established. The Bank has always considered cooperation with the leading companies in this sphere as its top priority, and under the unstable situation in the world financial markets, transport machine-building is becoming more significant for both the government and the Bank, owing to its strategic importance for Russia's social and economic growth.
CJSC Transmashholding is the largest company in Russia uniting the leading enterprises in transport machine building. They produce diesel-locomotive shunters, main-line and industrial electric locomotives, passenger and freight cars, electric train cars, locomotive and marine diesels, car castings and other products. The Holding includes Novocherkassk Electric Locomotive Plant, Bryansk Engineering Plant, Kolomensky Zavod, Penzadieselmash, Bezhitsk Steel Foundry, Tver Carriage Works, Demikhovsky Engineering Plant, Metrowagonmash, Oktyabrsky Electric Railway Car Repair Plant, Tsentrosvarmash, Transconverter (jointly with Siemens AG), KMT Industrial Group, Transmshholding Bombardier Transportation (Industrial) Rus (jointly with Bombardier Transportation), and Transmashholding Bombardier Transportation (Engineering) Rus (jointly with Bombardier Transportation).
The aggregate sales of products in January - September 2008 amounted to RUB 71.4 billion, which is a 45 per cent increase as compared to the similar period of 2007 (RUB 49.2 billion). The highest growth in sales was seen in main-line electric locomotives - by 63 per cent. Also growing were sales in main-line diesel locomotives - by 38 per cent (including in freight cars - by 71per cent). Sales in passenger cars increased by 36 per cent, in diesel engines and diesel generators - by 29 per cent, and in freight cars - by 24 per cent.