Machinery

Druzhkivka Machine Building [DRMZ UZ] has won a tender for supplying technical equipment for the “Torezantracit” state company. The overall contract amounts to USD 9mln. The Kharkiv Machine Building facility “Svitlo Shakhtarya” [HMBZ UZ] received a lesser part of the order – equipment with an overall cost of USD 1.4mln.

In July 2010, AvtoKrAZ [KRAZ UZ], the only Ukrainian heavy-duty truck producer, shortened its production by 22.1% MoM to 81 units. 7m2010 witnessed the company raising production 6.2 times YoY to 502 trucks.

During January-July 2010, Zaporizhya Automobile Plant, a member of the UkrAvto Corporation [AVTO_UZ], increased its share of exports in total sales to 51.8% (compared to 38.1% in 7m 2009). The total volume of exports accounted for 10.6 thsd units out of 20.5 thsd produced (in 7m 2009 – the overall volume of exports was 12 thsd out of 31.7 thsd units produced).

Zaporizhtransformator [ZATR UZ], the leading Ukrainian producer of electrical equipment, has won a tender for supplying equipment with overall value of USD 2 mln to a new combined cycle power plant recently built in Bolgrad, in the Odessa region, by Energoatom. Zaporizhtransformator has recently supplied equipment for the Nyagan power plant (Russia), which also uses combined cycle technology.

The state railway transport administration of Ukraine, Ukrzaliznytsya, plans to purchase 10 new high-speed electric trains by the end of 2011. New trains will have a speed of 160 km/h—double the speed of electric trains used currently—and will be used on high-speed portions of rail routes. The Kryukivka Train Car Building Plant [KVBZ UZ] will produce the high-speed electric trains. Meanwhile, South Western Railway plans to order 26 passenger cars from the company.

During January-June 2010, the Stakhanov Train Car Building Plant [SVGZ UZ] increased its output 9.5 times YoY to 3.6 thsd train cars. Company sales reached USD 162 mln, increasing 11.5 times YoY. Gondola cars remain the company’s best seller with a production share of 92% of the total units. Hopper cars make up the remaining 8%.

According to Interfax-Ukraine, in the period of January-June 2010, Bogdan Corporation (owner of Bogdan Motors [LUAZ UZ]) exported 380 buses, which is a 2.6-fold YoY increase. The export share of the total volume of bus and trolleybus sales exceeded 73%. Russia, Belarus, and Armenia remain the major importers of Bogdan buses.

In July 2010, Interpipe Nyzhnyodniprovsk Pipe Rolling Plant [NITR UZ] decreased production of steel by 18.8% to 39 ths t, railway wheels and bandage production fell by 20% to 12 ths t. January-July steel production showed an 86.3% rise to 285 ths t, output of wheels and bandages rocketed to123.8%, up to 94 ths t.

In July 2010 Bogdan Motors, owner of Bogdan automobile plant [LUAZ UZ] increased car production by 1.8% to 1885 units (excluding Bogdan-2310 pick-up cars). January-July data indicates a 5.3% production decline to 9034 cars (excluding 463 pick-up cars).

According to Interfax-Ukraine, Sumy Frunze Machine Building [SMASH UZ] has announced preliminary results for January-June 2010. The company estimates that YoY sales will decline by 13-15%, blaming contractors from Central Asia for not confirming previous orders as the major reason for the sales fall. Orders from Central Asia accounted approximately USD 100 mln, which is 20-25% of the total order portfolio volume. During 3Q2010 the company is expected to be under-loaded.