Bogdan and Skoda Transportation establish JV in Ukraine

At a press conference yesterday, Bogdan Corporation President Oleh Svinarchuk announced that Bogdan Corporation and Czech Skoda Transportation established a joint venture in Ukraine to sell trams, subway cars and suburban electric trains produced by Skoda Transportation. The JV’s charter fund is USD 2.5 mln. According to Svinarchuk, the JV plans to sell about 100 trams and 100 subway railcars by 2010. The preliminary agreement provides for Bogdan to prepare for production of these categories of vehicles in Ukraine by 2Q09. Inna Perepelytsya: According to management, the new JV is a trading company and not legally linked to Bogdan Automobile Plant (LUAZ: BUY). The impact of the deal will only be felt by LUAZ if the plan to produce vehicles in Ukraine (at Bogdan Automobile Plant facilities) is realized.