Vossloh AG : Vossloh expanding business in South America

01/21/2013

• Vossloh takes over Brazilian rail switch manufacturer Barros Monteiro
• Consortium set up for building a switch plant in Argentina

The Vossloh Group is bolstering its business in the growth market of South America by acquiring a company in Brazil and setting up a consortium for building a rail switch plant in Argentina.

As of January 18, 2013, Vossloh is acquiring a 100-percent stake in the rail switch manufacturer Metalúrgica Barros Monteiro Ltda (MBM, "Barros Monteiro"). Headquartered in Sorocaba in the State of São Paulo, the acquiree makes switches, turnouts and their components as well as manganese frogs for switches and crossings. In fiscal 2011, the company, which has a workforce of over 100, generated sales of €9.0 million. Barros Monteiro ranks among the three foremost manufacturers on the Brazilian market for these products and fulfills Vossloh's benchmarks regarding return on capital employed.

In Argentina, Vossloh has together with the national rail infrastructure authority ADIF SE formed a consortium for the purpose of building a switch plant at La Plata, 60 km from the capital Buenos Aires. The facility is scheduled to come on stream this year. Vossloh's stake in "ADIF SE - Vossloh Cogifer Argentina SA Consorcio de Cooperación," which will be the nation's sole manufacturer of rail switches, is 51 percent.

Says Vossloh CEO Werner Andree, "The South American rail equipment market is among the fastest-growing worldwide. Brazil, alone, has ambitious plans for expanding its rail infrastructure in time for the 2014 FIFA World Cup Brazil and the Olympics in 2016. By amplifying our presence we intend to share in the region's growth."

Werdohl, January 21, 2013

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Today's Vossloh is a global player in the rail technology markets. The Group focuses on its core businesses of rail infrastructure, rail vehicles, and electric buses. Reflecting this focus, Vossloh's two divisions, Rail Infrastructure and Transportation, operate under the roof of MDAX-listed Vossloh AG. In 2011, altogether 5,000 employees generated sales of €1.2 billion and an EBIT of €96.9 million.