VOSSLOH has won a contract to supply rail fastening systems for the new high-speed line under construction between Weifang and Yantai in China’s eastern province of Shandong.
The order is worth around €50m and will be handled by Vossloh subsidiary Vossloh Fastening Systems China, based in Kunshan. Delivery will take place between 2023 and 2024.
The order is the third that Vossloh has secured for high-speed fastening systems in China in recent months following deals worth €40m for the 200km Laixi - Rongcheng line also in Shandong in February and a €30m contract for another line in southern China in December. The company is also supplying three electric High-Speed Grinding City machines for the Shenzhen metro network.
Mr Oliver Schuster, Vossloh CEO, says the two previous orders met the company’s expected sales in the Chinese fastening market for 2022. He adds that the additional order largely meets the 2023 expected sales of fastenings systems in the Chinese market, providing “excellent prerequisites for achieving our ambitions growth and profitability goals.”
Indeed, Vossloh reported an 8.4% increase in sales to €942.8m in 2021. The company reported orders worth €947.6m, which exceeded the previous record high of €915.5m in 2020 by 3.5%. Operating Ebit also increased from €57.5m in 2020 to €72.3m and operating Ebitda increased from €107.5m in 2020 to €124.2m in 2021. The company reported an order backlog of €611.4m and also announced several framework contracts worth more than €200m throughout the year.
Schuster says Vossloh performed strongly on an operational basis despite the challenges of the pandemic, disruption to supply chains, and sharp increases in the cost of materials, logistics and energy.
