TMH to invest R500 million into South African rail manufacturing facility.
As part of its international growth strategy, Russian rolling stock manufacturer Transmashholding (TMH) is to invest R500 million in a South African manufacturing facility through its newly acquired subsidiary, TMH Africa.
TMH Africa, which is 70% owned by TMH and 30% owned by empowerment partner Mjisa Investments, has acquired railing contractor DCD Rolling Stock and will modernise and develop the 42 000m² manufacturing facility, in Boksburg, Gauteng that was formerly owned by DCD.
TMH CEO Martin Vaujour said the investment will see the company position itself as a local manufacturing partner for global original equipment manufacturers, while developing the company’s own capacity.
DCD Rolling Stock has recently spent R10 million on the installation of four Yaskawa Motoman robotic welding cells as part of a recapitalisation programme
TMH Africa CEO Jerome Boyet further highlighted that South Africa remains an attractive investment market owing to its stability and potential to grow into a large African and global market of choice.
South Africa, he added, will be used as an entry point for the rest of the African continent.
TMH plans to invest R50 billion across six countries, namely Argentina, Cuba, Egypt, Kazakhstan and South Africa, over the next five years.
TMH’s ‘go to’ market strategy for international markets, Boyet explained, is underpinned by the importance of partnerships and taking a long-term approach to investing.
Mjisa director Sam Bhembe said the opportunity to partner with TMH was unique, adding that TMH Africa will see the integration of its parent company into the local industrial industry, while deploying technologies and contributing to skills development.
Since 1944, DCD Rolling Stock has produced over 130 000 wagons, 1 000 surface locomotives and 4 000 underground locomotives and over 278 000 bogies.