Machinery

In November 2010 Turboatom’s [TATM UK] production volume accounted USD 5.79 mln while sales reached USD 8.68 mln which are a 100% planned volumes.

In January-November 2010 Bogdan Corporation, owner of Bogdan Motors [LUAZ UK], has produced 16.3 thsd cars which is a 20.1% YoY increase. YoY production increase in November accounted 53%.

Azovmash, proprietor of Azovzagalmash [AZGM UK] and Mariupol Heavy Machinery [MZVM UK] has increased sales 2.7 times YoY to USD 730 mln. Production of train cars has increased 2.3 times to 10.6 thsd units.

Azovmash, owner of Azovzagalmash [AZGM UK] and Mariupol Heavy Machinery [MZVM UK] plans supplying Mariupol Metallurgical Plant [MMKI UK] with 5 ladles 160 tons each. 3 ladles, 90 tons each were contracted by Dniprospecstal Metallurgical Plant [DNSS UK]. Equipment was also supplied for Dneprovskiy Metallurgical Plant [DMKD UK], Azovsteel [AZST UK] and Chelyabinsk Metallurgy (Russia).

Kryurivka Carriage [KVBZ UK] and FTD Dessau (Germany) have won a tender for supplying 1035 gondola cars to Donetsk railway, member of Ukrzaliznytsya financed by an EBRD credit. Kryurivka Carriage is to supply 460 cars while out of this number. USD 11 mln of EBRD credit for train car acquisition is still to be distributed.

AvtoKrAZ [KRAZ UK] has finished designing a new basic vehicle model KrAZ N23.0. The truck has 6x4 wheel formula and variable chassis length. It is equipped with Euro-3 engine and is designed for carrying over 20 types of equipment for communal services. The company estimates demand for the truck at 1.3 thsd units per year.

Bogdan Corporation has adopted a decision to consolidate sales of all (both produced in Cherkassy and imported) Hyundai cars on Bogdan Motors [LUAZ UK]. The decision was taken for enhancement of Bogdan Motors’ financials. Sales consolidation is to improve the company sales by almost USD 190 mln in 2011. The main aim of consolidation of sales is attracting additional equity financing.

Mining Machines Holding, owner of Donetskgirmash [DGRM UZ] and Druzhkivka Machinery [DRMZ UZ] has increased sales by 115% YoY since the year beginning and plans increasing it further to USD 95 mln in 2015 after last year’s USD 15 mln.

Anti dumping duties for Ukrainian pipes imposed in late 2005 expire in December, but Russia has started another investigation in June 2010. On Friday the Ministry of industry and trade of Russia issued a proposition on prolonging duties until 2015, raising rates of duties to just below 20%.

The economic court of Kiev shelved the suit of Motor Sich [MSICH UK] against Antonov aircraft plant regarding the replacement of Motor Sich engines with Russian ones. Motor Sich appealed to the court to shelve the suit after Antonov confirmed future purchases of 100 Motor Sich engines for 50 An-146/168 planes, contracted before the question of replacing engines arose.