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Kryukiv Wagon completes construction of a passenger railcar workshop

Kryukiv Wagon completes construction of a passenger railcar workshop

6 July 2011

Kryukiv Wagon (UX: KVBZ UK) will start operating a new passenger railcar workshop in August 2011 with an annual capacity of 200 passenger cars. The workshop cost the company UAH 150 mln in investment. Vitaly Gorovoy: We estimate this news as moderately positive for the company. Currently Kryukiv Wagon has no large orders for passenger railcars but it can benefit from product diversification in the long term. W expects Kryukiv Wagon to increase its 2011 sales to USD 695 mln (estimated 19% y-o-y growth) and improve its EBITDA twofold to USD 128 mln in 2011 due to a positive outlook for railcar prices.

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