First stage of Metalloinvesttrans rebranding completed
01.08.2012
Globaltrans Investment PLC (“Globaltrans” and together with its consolidated subsidiaries, the “Group”; LSE ticker: GLTR) announces that it has completed the rebranding of LLC Metalloinvesttrans (“MIT” or the “Company”). From August 2012, MIT will operate under the brand of “Ferrotrans”.
The decision to rebrand was taken after Globaltrans completed the acquisition in May 2012 of 100% of MIT from Metalloinvest, a leading global iron ore and HBI[1]producer based in Russia As part of the transaction, Globaltrans and Metalloinvest agreed a three-year service contract. In accordance with this contract, Globaltrans will provide rail freight transportation and logistics services to Metalloinvest, handling 100% of all its rail transportation cargo volumes in the first year based on agreed pricing terms and 60% in the following two years based on a “right of first refusal” principle.
Anastasia Lazareva, Chief Executive Officer of LLC Ferrotrans, commented:
“Ferrotrans is one of the major freight operators specialising in metallurgical cargo and will continue to focus on transporting cargo for Russia’s mining and metals industry. That’s why we chose a new name that reflects the Company’s business which is derived from ferrum, theLatin for ‘iron’.”
Following this development, the first stage of the Company’s rebranding has been completed. LLC Ferrotrans was registered in the Unified State Register of Legal Entities. The rest of the rebranding programme, which includes both technical and communication activities, will be completed by the end of 2012.
AboutLLCFerrotrans
LLC Ferrotrans (part of the Globaltrans Group) is one of the major private freight rail operators in Russia. The Company was founded in 2005 and until August 2012 operated under the brand name of “Metalloinvesttrans”. Ferrotrans operated 9,202 railcars as of the end of 2011 of which 8,256 were owned. The owned fleet included 7,851 gondola cars with an average age of approximately 8.7 years. In 2011, Ferrotrans transported 16.8 million tonnes with its owned and leased-in fleet, most of which was metallurgical cargoes.
About Globaltrans Investment PLC
Globaltrans is a leading private freight rail transportation group with operations in Russia, the CIS and the Baltic countries. Based on Rosstat data and the Group’s management accounts, the market share of the Group on a pro forma basis for the Metalloinvesttrans acquisition was 7% of the overall Russian freight rail Transportation Volume in 2011.
The Group provides services to more than 650 customers and its key customers include companies in, or suppliers to, a number of large Russian industrial groups in the metals and mining and the oil products and oil sectors.
In 2011, the Group’s Pro Forma Freight Rail Turnover was 144.9 billion tonnes-kilometres with Pro Forma Adjusted Revenue of USD 1,489 million and Pro Forma Adjusted EBITDA of USD 646 million[2].
Following the recent acquisition of Metalloinvesttrans (which from August 2012 now operates under the brand of Ferrotrans) and new contracts for the purchase of railcars, the Group is expected to have a Total Fleet of approximately 64,000 units by the end of August 2012.
Globaltrans was the first freight rail transportation group with operations in Russia to have an international listing of global depositary receipts (GDRs) and its GDRs (ticker symbol: GLTR) have been listed on the Main Market of the London Stock Exchange since May 2008.
To learn more about Globaltrans, please visit www.globaltrans.com.
[1] Hot briquetted iron.
[2] The figures for 2011 are calculated on a pro forma basis, taking into account the acquisition of LLC Metalloinvesttrans.