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12:43
RUSSIAN RAILWAYS BUYS UP SHARES OF LOCOMOTIVE REPAIR SUBSIDIARY

Moscow, August 5 (Interfax) - Russian Railways has bought up all the shares of Zheldorremmash, a subsidiary that is being set up to repair locomotives, the Federal Financial Markets Service (FFMS) said in a statement.

Zheldorremmash placed 15.163 billion shares with par value of one ruble each in favor of founder RZD.

The subsidiary is being set up on the core of ten Russian locomotive repair plants in Yekaterinburg, Rostov-on-Don, Novosibirsk, Chelyabinsk, Yaroslavl, Astrakhan, Voronezh, Ulan-Ude, Orenburg and Ussuriisk. All the plants were previously RZD affiliates. They had turnover of more than 22.6 billion rubles in 2008.

The RZD executive board decided to set up the subsidiary on September 30, 2008. The company was registered on December 9. RZD owns all the company's shares, according to the SPARK database.

Zheldorremmash plans to invest 6.5 billion-8.3 billion rubles in 2008 prices in renovating and expanding production in 2009-2015. The company will use both internal funds and loans for investment.

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