Greenbrier-AstraRail, a European subsidiary of the Greenbrier Companies, Inc., has completed an agreement with Rayvag Vagon Sanayi ve Ticaret A.S. (Rayvag) to acquire approximately 68 percent ownership in the company. Rayvag is a railcar manufacturer based in Adana, Turkey.
Rayvag also provides railcar repair and parts services, railcar maintenance services, and manufactures bogies and spare parts for railcars in the region. Asim Suzen, who founded the company, will retain 32 percent equity interest in the business and will continue to serve as Rayvag’s managing director. Suzen is also a member of the Turkish Minister of Transportation's Railway Transportation Association.
"Rayvag is committed to growth but could not achieve scale without this investment by Greenbrier," remarked Suzen. "Greenbrier-AstraRail's expertise in designing freight wagons that meet European rail standards, as well its world-class manufacturing systems and procurement practices, position Rayvag to respond to the rapidly advancing demands of Turkey's freight rail industry.”
“Greenbrier's financial strength also provides Rayvag with a partner capable of pursuing the substantial growth that we foresee in the Turkish railway supply business during the coming years,” added Suzen. “I am proud to lead Rayvag under Greenbrier's majority ownership."
Turkish rail freight volumes are expected to increase 65 million tons by 2023, with the government planning to invest more than US$23.5 billion in rail infrastructure projects through 2023. The Turkish rail industry is also migrating to European rail standards, and Greenbrier-AstraRail is the leading designer and manufacturer of freight wagons built to European rail standards. Adding Rayvag to Greenbrier Europe extends Greenbrier's continental reach, allowing the company to acquire new railcar customers.
"Greenbrier views Turkey and the Mediterranean region as a key corridor within the global freight railway system,” said William A. Furman, Greenbrier chairman and CEO. “Expansion into Turkey is a logical extension of our market-leading Greenbrier Europe operation. Turkey broadens Greenbrier's presence in the region where we are successfully working with Saudi Railway Company (SAR) on key rail projects and are planning to partner with other Gulf Cooperation Countries on railway supply needs in those nations.”
“We look forward to growing our presence in the Turkish rail market and the opportunity to be a part of the industry's growth within the region," Furman added. "Greenbrier's investment in Rayvag further demonstrates our commitment to enter promising international railcar markets. This will produce greater shareholder returns as Greenbrier grows its leadership on four continents as a global manufacturer in the expanding worldwide freight railcar industry."