Olavion, a part of the Unimot Group, has concluded a contract with NEWAG for the delivery of four locomotives

On 13^th June 2023, Olavion, a Unimot Group company, has signed a contract with NEWAG, a rolling stock manufacturer based in Nowy Sącz, for the delivery of four Dragon 2 locomotives. In addition, the contract provides for the upgrade of the railway vehicles with a diesel module as well as the ordering of up to 16 additional locomotives.

Under the contract, Olavion will purchase four locomotives from NEWAG for a total of PLN 74 million. The first locomotive will be delivered 16 months after NEWAG is informed by Olavion that corporate and financing approvals have been obtained, and the following three vehicles from the basic order will be delivered every two weeks.

Additionally, Olavion may purchase sixteen additional locomotives. With regard to orders placed in 2023, the purchase price was guaranteed, and an indexation scheme was established for subsequent years. The above purchase option may be used by the Unimot Group until the end of 2025. However, the Unimot Group is not required to acquire every locomotive in the purchase option pool. The decision on buying more locomotives will be made after considering the economic justification. If the option to acquire all sixteen locomotives is exercised, the total expenditure on these 16 railway vehicles could reach PLN 304 million at prices valid for 2023.

The NEWAG’s provision of maintenance services for a 24-month warranty period will also be the part of the parties’ collaboration.

The contract will be signed as soon as Olavion obtains all corporate and financing approvals. The Unimot Group expects that the aforementioned conditions will be met for the first four locomotives by the end of July 2023.

As a result of the contract concluded, Olavion will increase the number of electric locomotives, thus allowing the company to boost its business operations and strengthen its market position. Providing for the possibility of purchasing subsequent locomotives will allow us to respond to the ever-changing market and Unimot Group’s demand for rolling stock in a flexible manner.