Lutsk Automobile To Increase Charter Fund by 252% To USD 164.8 Mln.

According to a decision made at the company’s (LuAZ) EGM, additional shares will be placed from February 15 to June 1 2006. The attracted funds will be spent on increasing working capital and the enlargement of production. The same decision was approved by LuAZ’s shareholders on March 18, and the application to increase the charter fund was submitted to the State Securities Commission. However, amendments to the state budget for 2005, introduced at the end of March, which cancelled tax privileges for Ukraine’s automobile producers, put the fulfillment of LuAZ’s investment program under threat, and it withdrew its request. Now Bogdan holding, which includes LuAZ, is planning to build truck and car production capacities in Cherkasy and move production there from Lutsk. Lutsk will then become the company’s bus production center. The company will invest USD 195.3 mln in the car plant, and USD 24.5 mln in truck plant.