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Sinara - Transport Machines produced 1,600 pieces of railway machinery in 2020; the revenue reached 106 billion rubles

In 2020, Sinara - Transport Machines machine-building holding (STM, part of Sinara Group) maintained its production output at the level of the year 2019. A total of over 1,600 pieces of different railway machinery was supplied to Russian and foreign consumers, which included: 138 electric locomotives of all series, 77 diesel locomotives of all series and 1,193 pieces of track maintenance machines and specialized cars, 196 cars of Lastocka electric train. The Holding’s consolidated revenue (taking into account performance of Ural Locomotives, a joint venture by Sinara Group and Siemens AG) exceeded 106 billion rubles.

“We have consolidated our positions and confirmed our high-level competence of working in the rail rolling stock market. In 2019-2020, STM developed a slogan for itself to characterize the Company: Smart People, Smart Machines. It was well-orchestrated teamwork that ensured a worthy level of final performance indicators. And this refers not only to top managers but also to our workers at production sites. They took active part in efficiency improvement programs that reduced the customer lead time by 22% and enabled us to deliver over 90% of products to the customer just in time,” Viktor Lesh, Director General of STM Holding, noted.

Most of the produced machinery is supplied to the Holding’s key client - Russian Railways OJSC (RZD). Active interaction with RZD enabled the Company to avoid a significant reduction of order volumes, meet delivery deadlines and ensure product quality. Moreover, STM ceased to be only a railway machinery supplier, having significantly expanded the horizon of its business interests. Firstly, RSP-M became a part of the Holding in 2020; this is the biggest provider of infrastructure services to RZD. Secondly, STM made its presence known in the main-line locomotive building segment as a supplier of 2TE35А main-line diesel locomotives with DM-185 motors developed in-house and 2EC6A electric locomotives with asynchronous traction drives produced by Tyagovye Komponenty (‘Traction Components’) - also a part of the Holding.

Over the reporting period, STM has enhanced its positions as a vendor to industrial companies: 62 diesel locomotives were supplied to companies from the metal, coal, chemical and oil and gas industry, which is 1.5 times more than in 2019. This performance was only made possible by using the factoring tool, improving the product quality, delivering just in time and a program of subsidizing a part of expenses to customers from the federal budget, which was initiated by STM.

The Company focused on digitization, certification of new machinery and development of new environmental solutions in the machine-building area. The key dimensions were: a project on creating a digital twin of 6DM-185 motor (a unique Russian motor whose properties comply with global environmental requirements); digital design of 2TE35A main-line diesel locomotive, and developing a universal modular platform to produce urban public transport. Over 2020, STM procured a record-breaking number of Customs Union certificates (TR TC) for new machine models - 8 certificates, including three models of switch locomotives, samples of track maintenance machines, as well as ‘Sinara’ three-unit electric locomotive. The Company also ramped up its efforts to introduce an environmentally clean locomotive to the market - TEMG1 model with a gas engine, designed with cutting-edge technical solutions: a modular design, a microprocessor-based control and diagnostics system and security device system, and a compressed-air braking system. This makes new machines more financially profitable compared to serial locomotives, since fuel and lubricants expenses reduce by 30-40% and these trains do not require topping up for 5 days; money is also saved on scheduled maintenance.

High competence of STM Holding was confirmed by the agreement with RZD signed in October 2020; it stipulates Ural Locomotives production site as the basic venue to produce high-speed Russian trains running at 360 km/h for the Moscow - Saint Petersburg high-speed network project. New trains for the Moscow - Saint Petersburg high-speed network are designed collectively by RZD Engineering Center of Railway Transport and STM. 

STM put some effort into enhancing its export competence. Cooperation with the Indian Railways developed particularly well: in 2020, three new contracts for supplying 24 pieces of track maintenance machinery were signed; deliveries thereunder will begin as early as this year. The Company was actively working in the Kazakhstan market, where it shipped 8 TEM9 and TEM7A diesel locomotives. The total amount of foreign contracts signed last year reached approximately 90 million euro.  

A decision was also made over the reporting period to diversify the Holding’s activity and expand to the urban public transport segment. Urban Public Transport division and STM Trading House won the tender for supplying 90 single-unit tramway cars for Moscow in 2021-2022, with subsequent after-sales service for 30 years. The total amount of the signed contract is 11 billion rubles. Besides, STM together with our Czech partner, Skoda Transportation, acquired a share in the capital of a subway car manufacturer (Vagonmash, Saint Petersburg). This company is oriented at design, production, commissioning and after-sales service of contemporary urban subway cars, including life cycle support.

A large-scale program of upgrading regional urban public transport systems is being implemented in Russia, and STM intends to participate in this process. For this purpose, Sinara - Public Transport Solutions (Sinara - GTR) was included in the Holding. Its task is interacting with regions of the Russian Federation on issues of public transport development; the cooperation also provides a possibility to use leasing, concession and public private partnership mechanisms in this area. At the end of the year, Sinara - GTR agreed to work in these areas together with several regions: Rostov Region, Perm Krai and Republic of Bashkortostan.