Daily News

  • Azovstal To Build New Sinter Plant With Annual Capacity Of 12 Mn Mt In 2006-08

    The project is expected to cost about USD 520 mn. The company plans to attract a loan in order to finance the project. Currently, AZST operate sinter plant with an annual capacity of 2 mn mt. Concorde Capital: After commissioning the new plant, AZST?s market share in Ukrainian sinter production will grow from 4.2% to 30%. Excessive capacities will enable the company to sell part of its sinter output to other steel mills. Most Ukrainian steel mills use sinter as one of the major inputs for pig iron production.

  • Ukraine?s Trade Balance Totals USD 681.5 Mn In January

    The result was a ~67% yoy increase. Exports of goods grew by 16% yoy to USD 2,487.2 mn, while imports rose by 4% yoy to USD 1,805.7 mn.

  • Ukraine & Poland To Extend Odesa-Brody Pipeline To Plock In 2006

    The decision to extend the pipeline to Poland is likely part of negotiations to change the current direction of oil flow through the pipeline. Presently, oil is shipped from Brody, in western Ukraine to Odesa, in the south. Ukraine, Poland, and the EU will allocate EUR 2 mn for financing feasibility studies of the pipeline extension to Plock. The EBRD and European Investment Bank have already expressed interest in participating in the project. Concorde Capital: With the new government at the helm, the direction of the Odesa?Brody pipeline is likely to be switched back to its original design. Shipping oil from Brody to Odesa has proven unprofitable. The losing party will be TNK-BP, which will face increased competition from Kazak oil extractors. Ukraine is to benefit from both higher budget revenues and closer ties with the EU. Also, a number of unnamed oil majors have agreed to use the Odesa-Brody pipeline, if the oil is shipped to Europe, according to government sources.

  • Lukoil To Invest USD 150 Mn In Ukraine By 2011

    Russian oil major Lukoil will invest USD 150 mn in its subsidiary Lukoil-Ukraine by 2011. Lukoil President Vagit Alekperov said the money would be used to increase the number of gas stations. In 2005, Lukoil?s gas station chain will grow by 200-210 units, while overall the program envisages the addition of 350 stations. Lukoil also intends to invest nearly USD 170 mn in upgrading its JV Lukor (in the Kalush, Ivano-Frankivsk oblasts) and nearly USD 300 mn in the modernization of the Lukoil-Odesa refinery by 2011. Lukoil?s plans include the construction of an oil and lubricant factory in Boryspil. The project will cost an estimated USD 20 mn.

  • Motor Sich To Create JV To Assemble Electric Power Stations In Russia

    The Russian government will place the first order for 40 stations. The JV will conduct 15% of its operations, including repair and maintenance. The remainder will be made by Motor Sich. Concorde Capital: The plans will allow the enterprise to further increase its share of exports in sales, which make up over 82% of total revenues. Earlier, Motor Sich?s CEO expressed concern over the possible worsening of relations with Russia after the new president was elected. Increased output diversification is a good sign for the enterprise, as its airplanes engine segment is dependent on the orders for new An-148 airplanes, and government financing for An-70 planes.

  • LuAZ Cuts Output By 1.2% MoM In Feb

    Output was reduced to 1,984 automobiles in February, continuing the company?s mom output decrease which fell 10.35% in January. Nevertheless, the company increased output by 87.1% yoy in Jan-Feb to 3,993 automobiles. Additionally, two enterprises, which were incorporated into LuAZ starting Feb 15, produced 35 Bogdan buses and one truck BJ-1046. Concorde Capital: The company enjoys VAT and import tariff privileges, after the government officially approved its investment program in Jan. The program foresees an approximately two fold increase in car, truck and bus output by 2008, from 47,400, 6,500 and 3,400 units respectively in 2004.

  • ZAZ Increases Output By 28.4% To 11,773 Automobiles In Feb

    The increase included the production of 2,624 Tavria and Slavuta cars, 540 Lanos, 1,670 Sens, 96 Opel, 3275 VAZ and 3,568 other models. Concorde Capital: The output increase is related to growing internal demand, especially for low and medium-price segment cars. The company intends to increase production by 15% in 2005.

  • MTS To Invest USD 500 Mn In UMC In 2005

    According to MTS president Vasiliy Sidorov, the company intends to invest USD 500 mn in 2005 in the development of UMC, Ukraine?s major mobile operator network. Concorde Capital: A month ago, Telenor?s Vice President announced a USD 500 mn investment program for Kyivstar. Thus, UMC?s investment program is a response to a move by its main competitor. This is evidence that UMC plays the role of a ?follower? in the oligopoly game. The strategy gives the company a competitive advantage in terms of knowledge of what its competitor has accomplished.