Russia calls for ban against Stakhanov Railcar supplier

Обзоры по компаниям и отраслям 21.05.2013 The Russian Federation's Railway Equipment Industries Union is calling for a ban on all railcar bogie side frames of the 100.00.002-4 model manufactured in 2007-12, Russian Railways Vice President Valentin Gapanovich said on May 20, according to Interfax. It proposes replacing them with new reinforced side frames to improve cargo transportation safety. If proposal is approved, bogie casting prodcuers should redesign the faulty model and submit the amended design documents by June 1, according to the union plan. Currently, only India's Bhilai and Czech Republic's CKD Kutna Hora are certified producers of 100.00.002-4 model bogie side frames for the CIS market, with the Czech manufacturer being the only supplier of bogie casting parts for Ukraine's Stakhanov Railcar (SVGZ UK). Roman Dmytrenko: The possible 100.00.002-4 model ban could have a huge negative impact on Stakhanov's operations as the company has no other source of bogie casting parts, while the Czech producer has no alternative models of bogie side frames valid for the Russian market in its portfolio. Re-design and sertification of a new side frame, in the current ciscumestances, can take a long time. Currently, Russia accounts for 50% of Stakhanov's sales but potential lost sales could be much greater considering a banned part would be forbidden to use in railcars used for cross-border transportation withing CIS. The bans of certain foreign bogie casting suppliers by Russian authorities due to "quality concerns" has became a standard measure to support local producers as record-high demand for freight railcars in the CIS is cooling off.