One of the world's largest railway car and tank makers, Russia's Uralvagonzavod, has bought a controlling stake in France's Sambre et Meuse, a maker of parts for wagons and locomotives and plans to invest up to 6 million euros in Sambre et Meuse before 2012, it said on Thursday.
It did not disclose the sum of the deal but Kommersant business daily quoted market sources as estimating it at $20-30 million.
"The plant lacks cast parts, exports from France is to cover our needs," Kommersant quoted a source at Uralvagonzavod as saying. In 2010, Uralvagonzavod will produce 19,000 carriages instead of planned 24,000.
Uralvagonzavod said it would invest in the construction of areas of rod installation in a cast form, bead-blast processing and cutting by a robot.
Kommersant quoted Brunswick Rail analytical department director Dmitry Bovikin as saying that Russia's needs in cast parts was severe due to rising demand and carriage auctions held by Russian Railways state monopoly.
He said that imports even from the U.S. were profitable as a set of American cast parts cost up to $5,000 compared to Russia's $25,000.
MOSCOW, December 3 (RIA Novosti)