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Finnish investors buy Talgo Oy

01 May 2007

PATENTES Talgo withdrew from Finland at the end of March, with the sale of its 90% stake in Talgo Oy to investment group Primaca Partners. The former Talgo business with premises in Oulu and Otanm?ki reverted to its previous name of Trantech Oy following the deal. Primaca Partners Oy is an investment vehicle for Ilkka Brotherus, Curt Lindbom, Veli-Matti Mynttinen and Harri Launonen. The remaining 10% of Transtech Oy is owned by Chief Executive Markku Blomberg and factory manager Esa Rintala, who each purchased a 5% stake in Talgo Oy during 2005. Primaca has scrapped Talgo's plans for cuts among the 420 staff at the Otanm?ki plant if no further orders were received. 'We'll be revealing soon new orders which will require the recruitment of 10 to 20 new employees,' said Blomberg. New Chairman Lindbom believes 'rolling stock production is still viable in Finland, and there will be strong growth in the rail sector, especially in Russia which is just a short journey from Otanmaki.' He is not expecting quick profits, stressing it is 'a long-term investment.'No price was disclosed, but Patentes Talgo CEO Jos? Mario Oriol said the Spanish company 'got less than the amount we paid in 1999', when it bought the business from steelmaker Rautaruukki. Rights to Talgo Oy's wagon designs had been sold to Swedish firm K Industrier (RG 1.06 p47). On August 31 last year a k189m contract for 32 commuter trains for the Helsinki region went to Swiss firm Stadler. 'We'll now focus on central Europe commuter and express trains, for which there is not much demand in Finland', said Oriol.n