Machinery

During a recent press conference, Mr. Yaroslav Bondarenko, the Director of Economics and Finance at HC AvtoKrAZ [KRAZ, N/R], has announced that the company plans to postpone its IPO, the preparation for which was initially scheduled for completion by the end of 2008.

Zaporizhtransformator [ZATR UZ, N/R], one of the largest producers of electric transformers equipment in the world, has signed a USD 24 mln contract for delivering four transformers and four shunt reactors to the national power company Ukrenergo.

Kryukovsky Railcar [KVBZ UZ, U/R], the only Ukrainian producer of both passenger and freight railcars, has cinched a deal to produce double-decker passenger railcars with Finland’s Transtech Oy, which specializes in the production of these types of cars.

Turboatom [TATM UZ, N/R] signed a USD 19 mln sub-contract in the beginning of June with Russian Power Machines (PM) to deliver four rotary bucket-wheels for the Kaplan-type 165 МW vertical HPS to Shansogou (China). The first of the 8.5 m diameter wheels will be delivered in the next 24 months. The remainder will be delivered in five, four and three month intervals between deliveries.

Dniprovagonmash [DNVM, N/R], the large domestic carriage producer owned by TAS Group, plans to deliver around 1000 container platforms to Russian “VKM-Leasing” company. This delivery is going to be part of the long-term contract signed by the two parties. According to the agreement, DNVM is going to supply the Russian party with platforms made for transportation of heavy-weight containers.

Bogdan Corporation, two core parts of which are Automobile Plant “Bogdan” [LUAZ] and Cherkassy Bus Plant, increased net income 2.5 times YoY in 1Q08 to USD 8.1 mln. At the same time net revenue increased 2.4 times YoY to USD 1.08 bln. According to Corporation’s press room such results are obtained mainly due to the growth of cars area of business aimed to satisfy multiplying demand.

Turboatom [TATM, N/R] plans to increase revenues in 2008 52% YoY to USD 105 mln, TATM CEO Viktor Subotin said. He also noted that the company’s revenues for May 2007 to May 2008 amounted to USD 95 mln, which was 28.7% more than planned. According to Subotin, Turboatom secured contracts in 2007 worth a total of USD 128 mln, or double the 2006 figure. The contracts currently in the process of being finalized amount to USD 227 mln.

Dniprovagonmash [DNVM, N/R] has increased its carriage output 48% YoY in 5M08 to 400 units. Of this number, 220 were container carriages, 150 - gondola carriages and 30 - hoppers (the production of hoppers was reinstalled in 2007). Company management is further predicting stable output growth driven by the constant demand for carriages in the CIS. As of now, the company is completely back-logged.

The Rada’s decision to postpone the enactment of the 10% import duty law with regards to automobiles (1 to 2.2 liter engines), is going to allow Zaporizhzhya automobile plant (ZAZ) to retain its production and sales growth rates. ZAZ also plans to accumulate funds and complete the restructuring of enterprises and technical re-equipment of production, and preserve the existing jobs for its workers: such was the recent announcement of Mykola Evdokymenko, the Head of the ZAZ’s Board of Directors. Mr. Evdokymenko had also emphasized that the adoption of the law should enable the enterprise to shift its exports to new markets, be able to reorient economic ties; as well as complete the current production programs and implementation of long-term contracts.

The PFTS stock exchange has included Lutsk Automobile Plant [LUAZ, N/R] stock on the first level of listings. LUAZ currently assembles Kia and Hyundai automobiles at its Lutsk site, while VAZ automobiles are assembled at its Cherkasy factory. In 1Q08, 18.93 thsd automobiles were churned out at the company’s Cherkasy and Lutsk locations, up 45% YoY. In 2008, LUAZ plans to produce more than 100 thsd automobiles.