Azovmash enters the market railcars

"Azovobschemash" received a certificate of compliance from the Russian Register Certification on the Federal Railway Transport on hopper car for transportation of fertilizers, reported yesterday in the "Azovmash", owns the company. The press service of the company clarified that the certificate makes it possible to start the mass production of a new type of cars. "We have a few customers from Russia for this type of cars", — the press-service, refusing to name the potential partners. 

Demand for cars for transportation of fertilizers in the last year, up 20%. "In this case, it is still far from the peak in 2006, when a year was bought 4.5 million of these cars," — said a senior analyst at IG "Art Capital" Alex Andreychenko. According to him, most likely "Azovmash" will develop in the segment of mineral wagons with a large volume, as, for example, Ukrainian counterparts car plant, designed for 112 cubic meters, only offered the Bryansk plant. 

According to estimates by Mikhail Burmistrov, general director of the Russian agency "Infoline-analyst" in the CIS fleet of hopper cars for the transport of fertilizers, now has 45.4 million "Of these, about 40-45% over the next five years to update — they approached the maximum allowable term of operation, "- said the expert. According to him, on the basis of the average cost of such a car in the $ 75 million, the total cost of such an update will be about $ 1.5 billion, according to "Infoline-analyst," the market for hopper cars in the CIS for the transport of fertilizers, 2011 was 2.86 million are the largest producers of Bryansk Engineering Plant (five months in 2012 produced 450) Stakhanov Railcar (450) and Mogilev Carriage Works (110). 

Competitors "Azovmash" believe that the company will be able to find its niche in the market, however, will need to use an aggressive marketing strategy to compete with traditional manufacturers. "The plant produces such cars for 20 years, and our customers are assured of quality products," — said a senior source "b" on the Stakhanov Wagon Works. According to him, a lot will depend on the quality of products, but most likely at the beginning of sales "Azovmash" will have to offer a lower cost of production compared to the competition to win the market. 

In Ukraine, according to experts, such cars will be in demand among enterprises producing urea, in particular companies within the holding Ostchem, combining chemical assets of businessman Dmitry Firtash. The general director Alexander Ostchem Hulin said that his company would be interested to work with "Azovmash" for the purchase of mineral wagons. "If the value for money will be better than the competition, we are ready to work with them. We have a desire to renew its fleet, because the existence of its own hopper cars making our supply chain more stable and independent," — he said. 

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