Estonian company wins 50 mln USD contract in Uzbekistan

10.09.2012, 14:12

Skinest, a group owed by rail businessman Oleg Ossinovski, has won a 50 mln USD contract in Uzbekistan.

In August, Islam Karimov, president of Uzbekistan, approved the plan to modernize a mechanical and metal casting plant that belongs to the state railway company and costs a total of 120 million US dollars.

The modernized plant will be manufacturing both rail platforms and boxcars.

The tender was won by Skinest Rail that belongs to Ossinovski. Leonid Koltachov, Moscow representative of Skinest Rail, said that Skinest will oversee the modernization of the plant with Russian and Western technology and equipment.

First supplies will be delivered already this month while the fully automated production process will be launched next spring.
Uzbekistan considers the project so important that it has exempted the deliveries from customs duties with the presidential decree and works and services from income tax.

Skinest made its bid in connection with Künkel-Wagner, a German rail company. Other bidders were Ferrostaal AG and Shandong Highlight Co.

Ossinovski is one of Estonia’s richest businessman. Skinest Rail made 21.4 million euros in profit at revenue of 100 million last year. The group employs more than 1,100 people.