Machinery

Turboatom [TATM UZ, U/R], a large Ukrainian turbine-producer, has reported on its production results for the first half of January. The Company reported a marketable output of UAH 84 mln and UAH 78 mln in factory shipments.

According to the State Statistics Committee, 12.6 thsd railcars were produced in Ukraine in 2009, implying a 58% drop YoY. At the same time, freight railcar output in Ukraine showed a 206.7% growth YoY in December 2009.

The TAS Insurance Group and the TAS Insurance Company have bought stakes of 14.24% and 15.41%, correspondingly, in Dniprovagonmash (a Ukrainian freight railcar producer). The Cyprus-based companies Acvary Limited and Latinaizen Limited have transferred ownership of their respective 24% and 21% stakes. No further details about the transactions have been disclosed.

Azovmash has announced that it has successfully delivered two half-portal machines for scrap loading into converter. The equipment was supplied to the company Novolipetsk Steel. The value of this contract has not yet been publicly disclosed.

Azovmash – Ukraine’s largest machinery holding, which includes Mariupol Heavy Machinery [MZVM UZ, BUY] and Azovmash [AZGM UZ, SELL] – has reported an output of 853 railcars in December 2009. According to the Company, 653 tanks and 250 gondola cars were produced in December.

Kryukiv Railcar Works [KVBZ UZ, BUY], one of the largest Ukrainian producers of freight railcars and a monopolist in terms of passenger car production, reported that its order book is fully loaded until May 2010.

The Cabinet of Ministers adopted “The government target program of railway transport reform for 2010-2015” and “The strategy of railway transport development until 2020”. The program and strategy were approved on December 16, 2009 in the form of resolutions, registered as 1390-00 and 1555-00 respectively

Turboatom [TATM UZ, U/R], a large Ukrainian turbine-producer, reported a net income of UAH 127.2 mln (USD 15.0 mln) in 10M09, demonstrating a growth of 27.9%YoY. The Company also adopted its order book of UAH 2 bln (USD 250 mln).

Ukrainian avia companies are currently in the process of negotiating the delivery of nine Ukrainian aircrafts to Laos, Egypt and the United Arab Emirates, according to the Ministry of Economy.

Zaporizhtransformator [ZATR UZ, U/R], the world's largest manufacturer of transformer equipment, won the tender for producing six transformers for the ‘Novaya’ and ‘Ermensay’ switching stations in Kazakshtan. ZATR intends to supply them by February 2010. According to the Company, the construction of these switching stations are being carried out within the framework of preparations for the 2011 Asian Winter Games.