Машиностроение

In June 2009, the Ukrainian car market recorded a 78% drop compared to the same period in 2008, according to Delo newspaper. Car production in June was below the level of Mays’s output by 13% with output at 11.2 thsd units.

According to Interfax agency, Ukrainian businessman Sergei Tihipko is going to sell a part of his assets, including Kryukiv Railcar [KVBZ UZ, U/R] and TAS insurance company. Tihipko has plans to sell the selected assets quickly and use the cash to fund his bid in the upcoming presidential election in Jan 2010.

According to RBC agency, Prime Minister Putin signed a decree to increase RZD’s statutory capital by RUB 11.3 bln. About RUB 3 bln. (USD 96 mln.) of the new capital will be spent by RZD on passenger cars orders from Tver Wagon Plant, which is owned by Transmashholding and (TMH) where RZD controls 25%.

On June 25, the Word Trade Organization (WTO) declared that Ukraine’s 13% import duties on foreign vehicles needed to be scrapped. WTO members (USA, Japan and EU) are not satisfied with the current import duties on vehicles; likewise South Korea with refrigerators.

According to the AvtoKrAZ holding company [KRAZ UZ, N/R], the largest Ukrainian truck producer decreased production volume by 95% YoY to 100 trucks in 1H09. Currently KRAZ has 350 trucks in production out of 550 units for company inventory. In the first half of the current year about 50% of KRAZ’ vehicles were exported, versus 70% in the whole 2008.

Kryukiv Railcar [KVBZ UZ, U/R], in June began producing new bogies with a 25-ton per axle load capacity. According to a company press release, the new models, 18-9817 and 18-7033, utilize new technology that was developed together with US Amsted Rail Corporation. The new bogies’ improved load capacity has undergone certification and testing on a new gondola produced by KVBZ.

According to a press release from Prominvestbank (PIB) – one of the largest banks in Ukraine and controlled by Russia’s Vnesheconombank – the bank has opened a USD 39 mln. one-year credit line for Zaporizhtransformator [ZATR UZ, N/R] –the largest power transformer producer in the CIS. The credit line will be used to raise the company’s working capital.

According to Ukrainian News, Ukrzaliznitsya (the state railway company in Ukraine) is going to order 170 new passenger railcars and 10 locomotives on credit by 2010. UZ’s total CAPEX program for its rail fleet modernization is approximately UAH 4 bln (~USD 500 mln) in 2009.

According to a press release, Kharkiv-based OJSC Turboatom [TATM UZ, HOLD] – the largest turbine manufacturer in Ukraine – has signed a protocol of future cooperation with Skoda Power (Czech Republic) to produce power turbines for power Thermal Power Plants (FFPPs) in India. The companies agreed on further cooperation in power turbine delivery to Eastern Europe and Asia.

According to the RZD Partner journal, Russian State Railway Company (RZD) will decrease foreign orders for its rail fleet and other related equipment by 20% in 2009 to support local producers. In 1Q09 RZD decreased orders by 3.6x for mechanical equipment including railcars.