In accordance with its strategy; Nurminen Logistics plans to expand its railway wagon fleet, which currently consists of 1,000 wagons, by approximately 700–800 wagons. The company has applied for financing for the expansion of the fleet from EBRD (European Bank for Reconstruction and Development) and the negotiations concerning the loan are going on on an advanced level. According to tentative plan the EUR 57 million project would be financed mainly with a loan granted to the company by EBRD. This loan would amount to EUR 45 million, with a tenor of up to eight years. The implementation of the project is subject to, among other things, final credit decision, agreement on terms and documentation of the loan as well as materialization of the additional financing of the project. It is difficult to estimate when the implementation of the project will be confirmed, but the company’s goal is to start the intended wagon investment during 2012.
The new wagons would be acquired by Nurminen Logistics’ fully-owned Russian subsidiary OOO Huolintakeskus, which also owns the current wagons of the company. The target of the intended investment is to strengthen Nurminen Logistics’ position in the railway transportation between Finland and the CIS countries, in the railway transportation inside the CIS countries and to increase company’s competitiveness by larger and more modern fleet. If the intended investment materializes as intended it is estimated to increase company’s profitability significantly and to grow the net sales approximately by EUR 20 million.
– Nurminen Logistics is the market leader in railway transports from Finland to CIS countries and we believe that there is growing demand for company’s know-how also in the railway transports inside Russia and other CIS countries, where railway transportation has been free to competition already for a long time. Railway transports have significant position in Russia and CIS countries. The intended wagon investment would answer the growing wagon demand both in Finland and in CIS countries, says Nurminen Logistics’ President and CEO Topi Saarenhovi.
NURMINEN LOGISTICS PLC
President and CEO
Mr. Topi Saarenhovi
President and CEO
Tel. +358 10 545 2431
NASDAQ OMX Helsinki Ltd
Nurminen Logistics Plc
Nurminen Logistics provides high-quality logistics services, such as railway transports, terminal services, forwarding and special and heavy transports. The company has collected logistics know-how from three centuries, starting in 1886. Nurminen Logistics' main market areas are Finland, the Baltic Sea region, Russia and other CIS countries. The company’s share is listed on NASDAQ OMX Helsinki.