Machinery

The State Property Fund intends to sell a 76% stake in Luhanskteplovoz [LTPL UZ, HOLD] in March 2010. Earlier, the registrar of the ‘Center-Registrar’ securities company transferred a 76% stake in Luhanskteplovoz from the account of the ‘Bryansk Engineering Works’ Asset Management Company, which is part of TMH, to the State Property Fund (SPF). Prior to that, the Economic Court of the Luhansk Region had ordered ‘Center-Registrar’ to return the 76% stake in Luganskteplovoz to the State Property Fund.

Azovmash, the largest Ukrainian machinery holding, has reported on the successful shipment of equipment for the blast-furnace of the U.S. Steel Serbia plant. Azovmash has not disclosed the monetary value of the agreement.

The Ukrainian Automobile Holding, which is a member of the Bohdan Corporation, has decided to liquidate one of its four branches in Kyiv as a result of its failure to turn a profit for the Company.

Turboatom [TATM UZ] held its AGM yesterday (February 5). Of the UAH 125.7 mln (USD 16 mln) net income posted in 2009, the Company decided to allocate UAH 44 mln (USD 5.5 mln) towards a dividend payout. This implies a 2.6% dividend yield, 13.5 PER and UAH 0.104 (USD 1.3 cents) dividend per share.

In 2010, Kryukiv Railcar intends to boost its freight railcar output by 80.7% to 6 thsd cars. According to the Chairman of the Board of KVBZ, Evgeniy Hvorost, the main consumer for the Company’s production would be Russia, Kazakhstan, Belarus and the Baltic countries. According to Mr. Hvorost, Kryukiv Railcar also plans to produce 40 passenger railcars in 2010 vs. just 20 in the 2009.

Azovmash, one of the largest Ukrainian machinery holdings, which controls both Mariupol Heavy Machinery [MZVM UZ, BUY] and Azovzagalmash [AZGM UZ, SELL], reported that it has concluded an agreement on the shipment of three ATZ-22 aerodrome fuelers to Vietnam in 2010. According to the Company, the base for the fueler building will be lorries made by AvtoKrAZ [KRAZ UZ, U/R]. The value of this contract has not yet been publicly disclosed.

Japan’s Itochu Corporation is interested in cooperating with the Ukrainian turbine producer Turboatom [TATM UZ, U/R] with respect to the construction of the Dnestrovska Pump Storage Station, according to a statement by TATM’s press service. Itochu representatives visited Turboatom for an inspection of its production plants and technological projects. There were negotiations about the prospects of mutually beneficial cooperation in the field of hydro-electric engineering and specifically, a joint project in the filed of turbine production for thermal electric power stations.

Turboatom [TATM UZ, U/R], a large Ukrainian turbine-producer, reported a net income of UAH 125.7 mln (USD 15.7 mln) in 2009, which implies a decline of 13.5% YoY.

Azovmash has announced its intentions to deliver three furnace-charging gears, seven steel-teeming ladles and a slag car to the Mariupol Ilich Steel Plant by 2011. The value of this contract has not yet been publicly disclosed.

Ukrainian Railways (Ukrzaliznitsya) intends to purchase 63 passenger railcars in 2010, said the first deputy of the head of the Main Passenger department, Igor Breus.