Newag gets another big contract to supply trains

Rolling stock and train manufacturer Newag entered into an agreement with Lower Silesia Railways to supply several electrical support units for public trams and trains, with a value amounting to PLN 216.7 million net, the company said in a press release on Friday. “The subject of the contract is the delivery by the company of 11 electrical multiple units (EMUs), together with the provision of maintenance services. Deliveries of the EMUs will be made on the basis of an agreed schedule, and all deliveries will be made before November 30, 2017,” part of the statement read. The company also filed a performance guarantee, which is used to cover claims from the customer for non-performance or improper performance of the contract, in the amount of PLN 26.65 million, in the form of an insurance guarantee. “The agreement provides for contractual penalties if the units are delivered late, [and for] withdraw from the contract for reasons attributable to the company. The Purchaser is entitled to claim damages exceeding the amount of specified contractual penalties,” the statement also said. Newag, which is based in Nowy Sącz, has been listed on the WSE since December of 2013. In 2015, they had PLN 1.04 billion in consolidated revenue.