10 June 2020 y.

TMH reinforces its footprint in Europe with the acquisition of Dunakeszi Járműjavító (DJJ) site, in Hungary

• An ambitious modernisation plan with transfer of technology and production
• ~680 passenger coaches for Egypt – the largest ever railway manufacturing project in Hungary
• DJJ as TMH main manufacturing and services hub for Central & Eastern Europe

9 June 2020 – TMH announces the closing of the transaction related to the acquisition of Dunakeszi Járműjavító Ltd (DJJ)rail business and industrial site. As of 9 June 2020, TMH Hungary Invest owns 90% of the sharesin the DJJ business, including the plant and its 600-employee workforce. The management of DJJ is transferred to TMH Hungary , as project management organisation. 

The Sales & Purchase Agreement for 90% of shares previously belonging to MNV National Asset Management Agency and to MAV Railways was signed back in November 2019 and approved by the Hungarian government.On 22 May 2020, the national competition authority released its clearance for the deal, marking the completion of the acquisition process.

Kirill Lipa, TMH CEO said: “Thecompletion of DJJacquisitionrepresents a major step forward in our global expansion strategy. DJJ will be part of TMH, giving it significant opportunities to grow via its participation in national and international rail tenders.In a commitment to support Hungary’s export capabilities, TMH brings to the site of Dunakeszi the largest ever railway manufacturing project in the history of Hungary: the production and supply of almost 680 railway passenger coaches for the Egyptian National Railways.”

This project is part of the €1Bnrecord contract awarded by ENR to TMH Hungary in 2018, for the supply of 1300 passenger coaches. Co-financed by the Hungarian and Russian Export-Import banks Hexim and Rosexim, this project includes 51% of Hungarian content. 

Terence Watson, Europe Senior Vice President at TMH international added: “TMH aims at becoming market leader in Hungary and at serving the Europeanrailway market, ultimately creating in Dunakesziarolling stock manufacturing and services centre for Central& Eastern Europe.Weintend to implement a long-term upgrade programme to the site, building on the existing operations.TMH is committed to support Hungary’s economic growth, relying on local skills, transferring technology and know-how, and developingthe local supply chain to build a sustainable rail eco-system in the country.”

A transfer of technology and productionwill immediately startbetween the DJJ and TVZ factory in Russia, where the second half of the coaches is being manufactured. The first batch made in DJJis plannedfor shipment in the fourth quarter 2020. The first prototype passenger coach has just completed certification tests in Hungary, under the supervision of BME-ITS experts.

Founded in 1926, DJJ benefits from a strong expertise in the railway industry with continuous activity since its creation. DJJemploys around 600 employeeson rolling stock renovation projects, mainly for MAV.