OREANDA-NEWS. Mostotrest-Service (MTTS), a member of the Mostotrest Group of Companies, specializing in road and bridge repair and maintenance services, and the Russian-German joint venture Autobahn established a joint venture. The new company Autobahn-Mostotrest-Service (AMTTS) will be operating in the road repair and capital repair segment, whose share in the MTTS business currently does not exceed 20%. Participation in the new company will enable the partners to expand their regional footprint, significantly increase in-house production volumes, optimize project execution and procurement costs and improve operating efficiency by sharing production capacity.

MTTS and Autobahn will have a 55% and a 45% share in the authorized capital of the new company, respectively.

«Establishment of a unique joint venture on the platforms of leading market players makes it possible without additional investments not only to improve execution quality and profitability of existing contracts, but also, going forward, to significantly expand geography of operations through access to new regions and the federal network» - says Mostotrest-Service CEO VIktor Dorgan. «A combination of skilled staff of both companies, vast experience of Mostotrest-Service in the road repair and maintenance segment, unique and superior technical resources and expertise of Autobahn will enable us to offer our customers in various regions the highest quality of project execution.»

To improve the quality of execution, the partners intend to combine efforts on the use and implementation of advanced technologies and materials in road repair and capital repair (thin-layer coating machines, 3D-based coating engineering, including modified mixtures, use of certified innovative asphalt mix materials, marking materials and emulsions manufactured in-house). Joint projects will benefit from the most advanced equipment (mobile asphalt plant, asphalt pavers and marking machines, etc.).

The total length of the federal road network serviced by Mostotrest-Service, including toll segments, is more than 3,600 linear km. In addition, MTTS intends to participate in tenders to be held by TsentrAvtomagistral and Avtodor for the right to conclude repair service contracts for the existing public federal road network with a total length of more than 300 linear km, located in the MTTS coverage area.

Mostotrest-Service is a service company that specializes in all-in road and bridge maintenance services, including road marking, electric lighting, traffic light, traffic density registration and meteorological support systems maintenance, as well as repair and capital repair of highways and elevated structures. A substantial share of volumes is produced using in-house capacity. Mostotrest-Service was founded in 1996, is headquartered in Moscow and has two branches located in the Moscow and Smolensk regions.

Mostotrest is a major, diversified infrastructure construction company, with established presence in all core and related market segments, and a participant in Russia’s first public-private partnership projects. According to EMBS Group, an independent industry consultancy, in 2014 Mostotrest held a 13.4% share of the total Russian transport infrastructure construction market.

Mostotrest’s core competences include construction and reconstruction of bridges, roads and other transport infrastructure facilities; provision of road maintenance, repair and operating services. In 2012, Mostotrest also entered a new segment: management of road concessions.

The company was established in 1930 as a developer of complex and oversized bridges.

Mostotrest is currently participating in implementation of a number of complex transport infrastructure development projects, such as construction of the Section 4 (km 208 – km 258) and Section 6 (km 334 – km 543) of the M-11 «Moscow – St Petersburg» Toll Highway, construction and reconstruction of the M-4 «Don» and M-9 «Baltic» highways, construction of Businovskaya Interchange in Moscow, Bor Bridge in Nizhny Novgorod and Voroshilovsky Bridge in Rostov-on-Don.