The share of the Swiss train construction company Stadler Rail AG, rises 5.3% after the announcement that it has undertaken the largest contract in its history, for the delivery of 504 tram trains, worth 4 billion Euros.
The framework agreement with a consortium of six transport companies from Germany and Austria includes a steady order of 246 Citylink vehicles over the next 10 years, worth 1.7 billion euros, Stadler said.
There is a possibility that the order will increase by another 258, as the company announced.
The first four vehicles will be delivered in 2024, with the agreement also including a maintenance contract for up to 32 years.
The large order is positive for the company, and shows that there is a stable demand environment, according to Citi analysts.
The size of the order will mean a significant amount to be paid, which will increase Stadler’s moving head, while the maintenance contract helps the company’s long-term business mix, Citigroup said.
The vehicles will be used by six transport companies, including one in Karlsruhe and Saarbrücken, both in Germany, and in Salzburg and Linz, Austria.
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Source From: Capital
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