Motor Sich to open servicing plant in Russia by yearend

Motor Sich (MSICH) plans to open a servicing plant for its engines in Dubne (Russia) by the end of the year, Interfax reported yesterday. Motor Sich previously hoped to launch the plant this summer, but said it was forced to push back the opening due to the financial crisis. A Motor Sich representative said the plant was about 70% completed and should be operating at full capacity by 2010. Motor Sich put its total estimated investments into the plant at USD 80 mln over a four-year period. Yegor Samusenko: Delays in Motor Sich’s investment schedule is slightly negative news for the stock, implying that the company might be having liquidity problems, even though it posted a 30% EBITDA margin in 1H09. However, we remain positive on the stock, even after the stock’s price has grown 48% over last month.