The Greenbrier Cos. has completed an agreement to acquire a 68 percent ownership stake in Turkish railcar manufacturer Rayvag Vagon Sanayi ve Ticaret A.S.
Asim Suzen, Rayvag’s founder and managing director, said Greenbrier’s financial strength will allow the company to pursue “substantial growth that we foresee in the Turkish railway supply business during the coming years.”
Financial terms of the deal were not disclosed by either company.
State-owned Turkish Railways began opening its 5,500-mile rail network to use by private operators in 2014. Since then, freight movement on the country’s rail lines has increased. With freight volumes on Turkish rail lines expected to increase by 65 million tons by 2023, Turkey plans to invest more than $23.5 billion in its rail infrastructure.
Adding Rayvag to Greenbrier’s European operation, which also includes Poland’s WagonySwidnica and Romania’s AstraRail, expands the company’s coverage on the continent.
“Greenbrier views Turkey and the Mediterranean region as a key corridor within the global freight railway system,” said William A. Furman, Greenbrier’s chairman and CEO, in a statement. “Turkey broadens Greenbrier’s presence in the region where we are successfully working with Saudi Railway Co. (SAR) on key rail projects and are planning to partner with other Gulf Cooperation Countries on railway supply needs in those nations.”