The Timken Company entered into an agreement with United Wagon Company (UWC), a company building, leasing, engineering and servicing freight cars in Russia, to establish a joint venture (JV) to manufacture Timken AP-2 rail bearings in Russia.
As part of the agreement, Timken and UWC will establish dedicated manufacturing capacity, with construction expected to start within the next several months. This JV expands upon an established relationship between the two companies, which was formalised in 2013 with a strategic partnership agreement covering technical and design support and an initial supply of Timken AP-2 bearings to UWC.
The agreement provides both companies a strategic opportunity to capitalise on a surge in demand as the industry advances from using cylindrical roller bearings on freight car axles to the more efficient and reliable cartridge-tapered roller bearing Timken originally designed for the rail industry. Russia expects to acquire nearly one million new freight cars by 2030 as part of an aggressive investment program to renew and upgrade its rolling stock.
