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NEWS

DANOBATGROUP WINS THREE BIDS FOR THE RAILWAY SECTOR TOTALLING 103 MILLION EURO

20 December, 2013

DANOBATGROUP consolidates its position as a global leader in providing turnkey lines for the railway sector.

These orders are an absolute record in the history of the Spanish machine tool sector.

66 % of the orders will be completed locally.

DANOBATGROUP, the leading national cooperative in the machine tool sector and part of the Mondragon Corporation Cooperative Group, has signed major contracts with two renowned world leaders in the mining industry located in Australia. The first contract is for the supply of a turnkey workshop for maintenance and repair of bogies and wheelsets of railway wagons; the second is for an automatic line for maintenance of wheelsets. Both are for wagons for transport between a mine and port. In addition, DANOBATGROUP has reached an agreement with the company IRCON from India to supply an automatic line for the manufacture of wheelsets of passenger trains.The three contracts total 103 million Euro, a historical record in the order portfolio of DANOBATGROUP, which foresees excellent prospects for the coming years.

The last order of a similar magnitude in the sector was also provided by DANOBATGROUP, namely a line for manufacturing bogies and wheelsets for the Russian company TVSZ. Also, the group supplied the Italian company Lucchini SP with the world 's most advanced line for manufacturing axles for high speed trains.

Sectoral specialisation

These contracts result from focussing on sectoral specialisation, something DANOBATGROUP has been committed to in recent years; not only that, but also to offering added value that is not merely limited to machines, but includes major engineering for the design, integration and commissioning of these facilities. Long-standing international experience of the company in supplying turnkey solutions all over the world has been instrumental in the customer's decision to place these orders with DANOBATGROUP and not with other competitors, mainly from Germany.

Project features

The projects for Australia provide an answer to growing demand for automatic plants to perform maintenance on mining trains, usually located near the mining site in remote areas which therefore have a shortage of nearby labour. Disassembly, repair, reassembly and final inspection of all components must be performed fully automatically on these installations. The need to integrate - in one case 28 units and in the other 22 - robotic handling devices and a computer system for full control of the entire line turn these workshops in the most advanced facilities in the world for maintenance of basic train components: the bogie and wheelset.

To provide an adequate hedge for both projects, DANOBATGROUP has signed a partnership agreement with the Australian company MARAND Precision Engineering, which will undertake to implement the lines on site under the supervision of DANOBATGROUP.

On the other hand, the line for India meets the growing demand for greater safety and comfort on passenger trains. In this case, DANOBATGROUP will supply a turnkey line for manufacturing, inspection and assembly of wheelsets. The installation includes a total of 15 units, among which are, in addition to machines for machining of axles and wheels manufactured by DANOBATGROUP, a robotised system for handling components, and a computer system for full control of the line. In this case, DANOBATGROUP will work with a technical team of the branch office in Pune (India).

In all three cases, DANOBATGROUP assumes full responsibility for project implementation which includes, among others, preliminary engineering, manufacturing of critical equipment, purchase of specialised equipment, installation and commissioning, training in the use of all equipment and the line, technical backup when the line goes into production, and overall project management.

Local impact

The effect of these orders on the immediate environment of the cooperative is significant, since 66% of all orders will be produced locally, and a third of this percentage will be outsourced to habitual local suppliers of DANOBATGROUP.

Orders of this kind imply creating new job opportunities for highly qualified people who are capable of managing projects of this magnitude, both locally and in India or Australia, and have the necessary skills to interact with suppliers and customers from all over the world.

These contracts consolidate the global leadership of DANOBATGROUP in supplying turnkey installations for advanced sectors such as the Railway, Aerospace, Power Generation, Oil and Gas sectors, which already account for the majority of orders in the client portfolio of the Group. They also confirm the success of the investment policy in R&D of DANOBATGROUP over recent years, which stands at 7% of its net sales, and support the commitment of the company to take on qualified staff: currently more than 43% have a university degree.

    20/12/2013News

    DANOBAT S. COOP.

    Tel.: + 34 943 74 80 44

    Fax.: + 34 943 74 31 38

    danobat@danobat.com

    www.danobatgroup.com

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