Strategic Partnership to Serve the Growing Rail Industry
European Bearing Corporation (EBC, Russian Federation) and Amsted Rail Corporation (USA) have announced a joint venture to manufacture and distribute cartridge tapered roller bearings for the fast-growing rail market in Russia and the Commonwealth of Independent States (CIS).
Although rumors of the partnership had circulated for months, the official announcement confirms Amsted Rail/Brenco’s entry into the Russian rail bearing sector. The venture combines Amsted’s technology with EBC’s strong market presence, creating a powerful advantage in the region.
Transition From Plain Bearings to Cartridge Roller Bearings
All CIS rail systems are undergoing major conversion programs, moving away from traditional Russian-produced plain bearings to modern cartridge roller bearings. EBC has long been the primary supplier of these updated products, and this partnership accelerates the modernization process.
By mid-2008, the companies expect to begin assembly and distribution, with full-cycle production to follow shortly thereafter.
Amsted Rail’s Strong Market Position
Amsted Rail is the parent company of Brenco, Griffin Wheel, and ASF-Keystone. Brenco, its bearing manufacturing division, holds a dominant 60% share of the U.S. railcar bearing market, making it the leading supplier for new railcars.
In 2006, Amsted also acquired OOO Transolutions CIS to represent its interests in the region. This subsidiary focuses on strategic partnerships and cooperative initiatives to introduce proprietary technology in Russia and the CIS, aiming to raise both quality and performance in the railway sector.
Bearings Designed for CIS Rail Standards
Brenco is developing a range of bearings for 1520 mm gauge railroads. Its 130x230x150 mm bearings have already received certifications from:
The Registry for Certification at the Federal Railway Transport (Russia)
GOST R (Russia)
The UkrSEPRO System (Ukraine)
These approvals highlight Brenco’s readiness to serve the CIS railway market with reliable and certified products.
European Bearing Corporation’s Market Leadership
EBC brings unmatched strengths to the partnership, including its Stepnogorsk bearing plant, which employs more than 2,100 workers and produces over 3 million rail bearings annually. With a reported 90%+ share of the CIS rail bearing market, EBC is the undisputed leader in the region.
To address growing demand, EBC has announced expansion programs for its Stepnogorsk facility. Similarly, the Kharkiv Bearing Plant (HARP), the second-largest supplier in Russia, produces around 600,000 rail bearings annually and has revealed ambitious expansion plans.
Rising Competition in the CIS Rail Bearing Market
The joint venture faces growing competition as global bearing leaders enter the market:
SKF announced in late 2007 that it would build a rail bearing plant near Moscow, expected to open in September 2008, offering both new bearings and reconditioning services.
INA partnered with EBC’s Stepnogorsk plant in 2002, further integrating international expertise into the Russian rail industry.
Adding intrigue to the sector, Russian media recently reported that billionaire Roman Abramovich acquired a 50% stake in European Bearing Corporation, strengthening EBC’s financial and political influence.
Looking Ahead: Global Impact of the Partnership
According to Oleg Savchenko, EBC’s primary owner:
“This cooperation between Amsted Rail and European Bearing Corporation gives us confidence that in the near future our joint venture will become one of the most efficient producers in the railway industry, not only within the CIS, but also throughout the world.”
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