Machinery

Ukrzaliznitsya (UZ) intends to raise more than USD 800 mln in credit resources in 2010. According to its previously announced plans, UZ had announced its intention to raise nearly USD 500 mln this year. Currently, the railroad monopoly has managed to raise only USD 120 mln in borrowings. UZ’s current loan portfolio is nearly USD 1 bln.

The largest producer of passenger cars in Ukraine, the Zaporizhzhya Automobile Plant (ZAZ), intends to cut output by 61.2%, or by 157.6 thsd units, to 100 thsd units in 2010, compared with the Plant’s output level in 2008. The Company also announced that it intends to export more than 50 thsd cars, mainly to Russia, in 2010.

The Bogdan Automobile Plant [LUAZ UZ, U/R] recorded a net loss of UAH 322.611 mln (USD 39 mln) in 3Q09, while its net sales decreased by 66.73% to UAH 511.63 mln (USD 62 mln) in that period. According to a press release issued by the Company, in January-September 2009, LUAZ recorded a net loss of UAH 530.473 mln (USD 65 mln.), while net sales dropped by 83.13% to UAH 971.775 mln (USD 118 mln).

According to the press service of Turboatom [TATM UZ, HOLD], the largest turbine producer in Ukraine, the Company has reached an agreement with Ukrgydroenergo to modernize the hydro turbines at the Kremenchug HPP. After the modernization process, the hydro aggregate capacity will increase from 58 MW to 62 MW and the HPP’s productivity will increase by 4%. While the period for fulfillment of the delivery is 18 months, the monetary value of this deal has not yet been disclosed.

The economic court of the Luhansk Region mandated the return of a 76% stake in Luganskteplovoz (LTPL: N/R) to the State Property Fund's ownership. The court obliged the "Center-Registrator" to withdraw the stake of the company from the account of Briansk Machinery and to reinstate the State Property Fund of Ukraine as the owner of the 76% block.

According to data from Lutskiy automobile plant [LUAZ UZ, U/R], which belongs to “Bohdan” corporation, the company decreased production output by 13.7%MoM to 1257 passenger cars in September 2009. LUAZ output for the first 3 quarters decreased by 82.6%YoY to 12251 cars.

During a meeting of the management of Ukrzaliznytsia and EBRD new plans of UZ to purchase 400 freight railcars with the help of an EBRD loan were announced. It is expected that the bank will provide UZ with an USD 62.5 mln in 2010 within the terms of current loan agreement to to update its rolling stock. Currently the loan agreement entitled“The project for renewing of rolling stock” is being executed, and under its terms another 1000 cars are planned to be bought in 2009.

According to press service Sumy Frunze Machine Building [SMASH UZ, N/R], company is going to supply gas pumping apperatus to Gaprom Transgaz Ukhta till 2010. The value of the deal is estimated to be at level of USD 7 mln. Specifically, SMASH will supply gas pumping equipment to the Sindor and Mikun compressor stations.

According to an official of the holding company AutoKrAZ [KRAZ UZ, N/R]– the largest producer of heavy trucks in Ukraine, the company will decrease production output by 81% to 690 vehicles in 2009. About 500 trucks will be produced in the 4Q09 based on special orders from state agencies.

According to an interview to business newspaper Kommersant-Ukraine, Mr. Viktor Chaban – VP of Energy Standard, which controls Zaporizhtransformator [ZATR UZ, N/R] – the world's largest manufacturer of transformer equipment, the company estimates it’s transformators output at level of 40 thds. MWA in 2009.