News

Paris, October 6, 2010 – On October 1, 2010, Faiveley Transport USA and Amsted Rail finalized a joint venture, Amsted Rail – Faiveley LLC, based in Greenville, South Carolina. This new joint venture had been previously announced in July 2010.
 
Faiveley Transport brings to this new company a wide range of AAR-approved braking equipment for the freight-car market, as well as its related assets and experience in engineering, project management, and industrial manufacturing. These assets were previously held by its American subsidiary, Ellcon-National, which will retain primarily its transit-car business.
Amsted Rail brings to the joint venture access to its commercial network in the United States and around the world, as well as a portfolio of brake products that complements the contributions of Ellcon-National.
 
Amsted Rail, the world leader in the manufacture of undercarriages for freight cars, can now offer its customers via this joint venture a combined offer of bogies and brake equipment. The joint venture will enjoy privileged access to the American freight market and to export markets—such as India, Russia, Brazil, and South Africa—where Amsted Rail already does business.
 
Faiveley Transport USA holds 67.5% of the joint venture and will control management appointments. Amsted Rail reserves the right to increase its ownership of 32.5% up to no more than 49%, through the reinvestment of dividends received from the joint venture.
 
This ambitious partnership between two major global players in the railway market will allow them to accelerate their growth through more efficient and competitive offers to their customers in the life cycle of freight rolling stock.
 
In addition, this new subsidiary should benefit from the expected rebound in the North American freight market. After a significant decline in demand of 14,000 cars in 2010, the market expects renewed volume of 30,000 cars in 2011, and as many as 50,000 cars in 2012.
 
"This joint venture provides freight-car manufacturers with the widest range of components and undercarriage equipment systems on the market. This strategic agreement will accelerate Faiveley Transport‘s development on the market of freight braking systems, both in the United States and in high-potential international markets—such as India and Russia—and provides a powerful commercial support" stated Robert Joyeux, CEO of Faiveley Transport.
 
Financial calendar: 25 October, 2010: Interim sales