War in Ukraine: Alstom, in turmoil, unscrew out

The sales of the French group in Russia are anecdotal, but the conflict could hurt its alliance with the Russian Giant of the TMH rail and its ambitions on the rail markets of the former Soviet Union.

by

It is at a stock traveler that the number one European rail industry, Alstom, had to face Monday 7 March. The action fell by 5.7% closing, after unscrewing at the beginning of the session, beyond – 12%. It is therefore Alstom caught up, in turn, after several other French groups, by the turmoil of the war in Ukraine, because of his activity, his contracts and his ambition in the former Soviet Union.

To tell the truth, the market reaction presents some disproportions with the reality of the business volume made in Russia by the French group, the scholarships being entered into a downtime phase where they surreague to any new concerned. “How can I say that Alstom presents a great exposure to Russia, as we have read here or there?, Wonders a spokesman for the company. Our turnover in Russia represents less 0.5% of our sales. We have thirty employees in Russia, forty in Ukraine and no expatriate in both countries. “

The Russian activity of Alstom is linked to a participation of French in the Russian manufacturer of transmasholding railway rolling stock (TMH), up to 20% of the capital. The tricolor group in TMH The traction system made in Tarbes for a locomotive model, but at a slow pace (about five per year). TMH brought 44 million euros of income, over 300 million benefits for Alstom in total, during the 2020-2021 fiscal year (Enclosed at 31 March) and generated a loss of 2 million in the first half of the year 2021- 2022 (at the end of September).

“sell, but sell to whom?”

Financial damage does not appear to be major. But it is without counting the risk on Alstom’s participation in TMH, which the Tricolore Group has registered for 480 million euros in its accounts. What will become of this half billion? No decision was made for the moment as to a possible exit of this participation, we indicate at Alstom. “Sell, but sell to whom? And what is really worth 20% of a Russian business today?”, Wonders a good connoisseur of the file.

More broadly, the invasion of Ukraine obeys the ambitions of Alstom in the republics of the former Soviet Union, where the group of Saint-Ouen (Seine-Saint-Denis) had made some beautiful conquests these Recent years: 40 freight locomotives were sold to Azerbaijan (the last one was delivered a few days ago), and, above all, a monster contract for 250 other locomotives for Kazakhstan is running. Alstom has two factories in Kazakhstan, the largest in the Nursultan capital, in joint venture with TMH (75% Alstom, 25% TMH).

You have 38.97% of this article to be read. The rest is reserved for subscribers.

/Media reports.