RUSSIA: The bankrupt Engels Locomotive Plant has been purchased by Inter Cargo Co for 2·8bn roubles, below the auction’s starting price of 3·83bn roubles.
ELZ was founded in 2012 by Bombardier Transportation and Russian investors First Locomotive Co and VneshEconomBank Leasing to produce Traxx-derived dual-voltage electric locomotives for the 1 520 mm gauge region.
The plant in Saratov oblast was developed with capacity to produce 150 2EV120 Prince Vladimir twin-section locomotives per year, but it has only produced two prototypes, with the first unveiled in 2015.
In 2017 VEB filed a claim to recover 9·4bn roubles from the plant. This was paid in 2020, and in December that year ELZ was declared bankrupt. VEB’s claims for a total of 25·7bn roubles, including 3·8bn roubles secured by collateral, were added to the register of creditors’ claims.
The sale agreement was signed on January 23. The plant is in working condition.
Inter Cargo Co was founded in 2009 as a rail operator, rolling stock repair contractor and component supplier. Its revenue in 2021 was 908·1m roubles, with net profit of 577·6m roubles.
