OREANDA-NEWS. October 25, 2012. SCM Group has increased its stake to 100% in Donetsk-based Lemtrans, Ukraine's largest rail operator.

"Acquisition and absorption of the company into SCM Group is a strategic move. Lemtrans will ensure stable supply of rolling stock to the Group, which is the biggest consignor. In the meantime, we regard Lemtrans as an independent market business cooperating both with domestic and foreign freight owners," stated Nikolay Nesterenko, SCM Director of New Business Development.

Today Lemtrans operates more than 12,000 open cars and is the biggest private rail operator in Ukraine. The company accounts for 8.5% in the freight transport market and 14.5% in the open cars' market. In 2011, the volume of transported freight exceeded 40 million tonnes.

"The company's strategy is to provide freight services through in-house car fleet. Therefore, Lemtrans' investment policy will seek to upgrade and increase the company's car fleet as well as improve the quality of services. Lemtrans has a strong team and expertise to keep this focus. With SCM as a strategic investor, Lemtrans can now enjoy our support and our commitment to financing its investment programmes," Mr Nesterenko went on to say.

Nikolay Nesterenko highlighted that by investing in freight transport SCM would ensure effective and continuous operations of both Lemtrans and related businesses, which employ thousands of people.

SCM has been the minority shareholder of Lemtrans since 2003 with a stake of 19.95%.

Integration of Lemtrans into SCM Group has been realised in accordance with the current legislation and approved by the Antimonopoly Committee of Ukraine and European antimonopoly authorities.