Swiss company Schwihag plans to move part of its production to Ukraine

The Swiss State Secretariat for Economic Affairs (SECO), JSC "Ukrzaliznytsia," and Swiss private companies Schwihag and Arthur Flury have signed memorandums of cooperation. This was reported by the Embassy of Switzerland in Ukraine and the Ministry of Communities and Territories Development of Ukraine.

"Schwihag AG, the world leader in railroad track systems, will supply materials for 520,000 sleepers and plans to localize production in Ukraine with the transfer of part of its production capacity," the Swiss embassy said in a statement.

Arthur Flury AG will provide contact networks, which will contribute to the reliability, extension of service life, energy efficiency, and sustainability of Ukraine's railway infrastructure.

Ukrzaliznytsia will receive technical assistance from Switzerland, including materials to restore and modernize tracks and power grids, the Ukrainian ministry added.

The total cost of the equipment is 27.3 million Swiss francs, which is equivalent to more than 29 million euros. The Swiss government provides funding for the materials for UZ.

Over the next three years, Swiss companies will transfer to UZ:

→ more than 1.04 million sets of rail fasteners, which will allow the upgrade of about 250 km of tracks. For passengers, this means smoother and more comfortable train travel, and for the railroad, it means protecting the tracks from deformation under load and effectively dampening vibrations;→ about 4,000 sets of sectional insulators for the overhead line network — enough to modernize about 36% of the entire overhead line network. These devices make it possible to carry out repairs on a point-by-point basis without stopping all trains.

"Trains will be able to cover routes faster, infrastructure damage will be repaired more quickly, and the tracks will wear out much less," the ministry explained the benefits of using Swiss equipment by UZ.

These memorandums were signed as part of the first call for project proposals for Swiss companies operating in Ukraine, announced in January 2025.

The second call for proposals, with a total budget of CHF 150 million, was announced in January 2026.

Swiss support for Ukrzaliznytsia began in 2023. Schwihag systems have already been used to restore rail links with frontline regions, develop western border crossings with the EU, and construct 1435 mm gauge tracks.

• Earlier in January, UZ received 2,000 tons of P-65 rails produced by Nippon Steel. By the end of the month, Ukraine will receive another 1,000 tons of such rails. The total cost is about $4 million.