Spain's Danobat wins two contracts in Russia for €90 million

On 4 December, the Danobat Group, the machine tool division of the Mondragón Corporation, announced the signing of two supply contracts in Russia, one for €50 million and the other for €40 million, together with new offices to be opened in Russia, a new factory in Deba and a production plant in India. The firm’s order portfolio is now totally covered until November of 2009. The €50 million contract is for the design and supply of two train rolling surface component production lines. The first impact of this contract, the largest in the history of Spanish machine tool manufacturing, will be the opening of a new group plant in Deba for the newly-founded company Danobat Railway Systems, with the creation of 60 jobs. An investment of €12 million will be made in these facilities. An office and warehouse will also be opened in Russia for maintenance and customer service. The contract includes the delivery of two turnkey automated production lines. The first will consist of 24 machines and will handle blocks for manufacturing complete train axles at a rate of one part every four minutes, with a view to manufacturing 50,000 units a year. The second line, consisting of 17 machines, will produce bogies or railway carriage supports. The Elgoibar, Basque Country-based group has also signed an agreement of intent worth €40 million with another two Russian groups: Russia Railways (RZD), which employs 1.2 million workers, and the machinery construction group TMH. The contract, signed in October, will be fulfilled over the next three years, and an order has already been secured for €4.7 million. This contract was signed in the presence of King Juan Carlos and the Development Minister Magdalena Alvárez.