It is observable that the current trend for operators in Europe is to focus on a subcontractor network to produce / repair freight wagons of countries East of the EU. As a renowned manufacturer of bearings for axles of the freight wagons, KINEX BEARINGS naturally had to respect these trends and adjust its sale and technical politics accordingly.

Multiple projects with significant manufacturers of wheelsets, bogies and its components were successful this year. They were realized in the Russian Federation, Ukraine, China, Turkey as well as Iran. Against the current or forecasted freight transportation needs in Iran, there is a real deficiency of wagons. Since almost 100% of freight wagon fleet is in private hands, the key question is how to finance individual projects. The big players of freight wagon manufacturing such as Russia or China offer their own financing insured by their financial institutions for domestic OEM and operators – allowing them low prices and giving them a competitive advantage. This gives more value to the fact that KINEX, with its Iranian partners, has managed to push through the domestic market and after years restore deliveries to the domestic OEM and operators of railway transportation. It was also thanks to the sales activities of KINEX focused on technical support regarding assembly, maintenance and technical consulting that were always parallel. This contributed to viewing KINEX as an OEM with high quality standard and competitive price.

It is expected that KINEX will defend its position on the rest of the east markets as well – where components and wheelsets for the EU will be manufactured. A successful execution of the first projects confirmed that the trend that has been set is correct and only the skills of KINEX will be able to maintain the competitive position on the mentioned markets in the future.