Luhanskteplovoz Ships Diesel Locomotive to Russian Railways

Luhanskteplovoz (LTPL: BUY) delivered its first diesel locomotive in 17 years to Russian Railways, Russia’s monopoly railway operator, this year. By the end of this year, the company plans to ship 30 locomotives to Russian Railways. Additionally, Bryansk Heavy Machinery announced plans to invest more than USD 230 mln into Luhanskteplovoz’ modernization by 2015. According to the management, the company’s annual production volume will grow more than 1.5 times and in 2011 reach about USD 1 bln. Inna Perepelytsya: Orders from Russia and the expected hike in production volume support our forecasts for significant sales growth in the mid-term. Additionally, the long-term investment plans the company announced are higher than we expected.