Russia's Evraz to team up with German hardware leader
MOSCOW, Sept 17
MOSCOW, Sept 17 (Reuters) - Steelmaker Evraz, Russia's main producer of rail track and train wheels, is teaming up with Germany's GHH-Valdunes in a joint marketing and distribute deal, the Russian company said on Monday.
The two companies are expected to sign a final cooperation agreement by the end of the year, the statement said.
"We welcome this opportunity to collaborate with GHH-Valdunes and thereby expand our product offering and geographic coverage in the promising international market for railway wheels," said Ilya Shirokobrod, head of Evraz's railway division.
GHH-Valdunes is Europe's leading manufacturer of railway wheels, axles and wheelsets for the rail industry.
"It is an attempt by Evraz to team up with someone ready to share its high-tech solutions," Valentina Bogomolova, an analyst from Uralsib brokerage, said. "Evraz seeks to increase its own products' added value ahead of possible large-scale orders."
The state-run monopoly Russian Railways has recently launched several high-speed routes, linking Moscow with St. Petersburg and Nizhny Novgorod. Germany's Siemens AG built trains for the project.
President Vladimir Putin said last year that the country will build more high-speed routes ahead of soccer's 2018 World Cup in Russia.
But the expansion of high-speed railways was recently put on hold because of a shortfall in state funding, sources close to the project said.