Stakhaniv Wagon to increase output by 3x in 2010

Stakhaniv Wagon (SVGZ) plans to increase production in 2010 by threefold to at least 6 ths railcars, Eduard Miserva, head of the company’s supervisory board said yesterday, according to Interfax. Miserva said the company plans to make 2 ths railcars in 2009. Miserva said major customers Sibur-Trans, Brunswick Rail Leasing and FosAgro-Trans all planned to resume purchasing programs next year. Yegor Samusenko: Though it is reasonable for Stakhaniv Wagon to increase output in 2010 in line with the recovery in the transportation sector, we view the management’s guidance as overoptimistic. Currently, the company’s order book is filled only until the beginning of 2010. We expect a slower recovery in Stakhaniv Wagon’s output, to 1.6 ths railcars in 2009E and 2.5 ths in 2010E.