Tuesday, March 25, 2014

Timken Co., United Wagon in joint venture

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Canton, Ohio-based The Timken Co. said Tuesday, March 24, 2014 it has entered into an agreement with Moscow-based United Wagon Co. (UWC) to "establish a joint venture to manufacture Timken® AP-2™ rail bearings in Russia."

The joint venture "will advance the safety, reliability, and efficiency of the local rail industry, equipping customers' freight cars with premium Timken bearings," the company said. The joint venture 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 United Wagon CEO Roman Savushkin.

As part of the agreement, Timken and UWC will establish dedicated manufacturing capacity, with construction expected to start within the next several months.

Timken said the joint venture "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 Timken Vice President for rail, highway, and light vehicle systems Brian Ruel.

"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."