Energy Machine Building Holding Officially Created. Turboatom Not Included.

The government’s decree dated by June 13 officially confirms the creation of the energy machine building State Corporation, Ukrenergomash, which includes the state-owned companies Elektrovazhmash, Kharkiv Electromechanical Plant, and the Kharkiv State Instrument-Making Plant. With the same decree the government transferred the rights for managing state’s 75% stake in Turboatom (TATM: N/A) from the State Property Fund to the Ministry of Industrial Policy. Concorde Capital: Earlier the government said it would include Turboatom in the state-owned holding, in spite of the fact that 25% of the company is privately owned, and the protests of its management. TATM’s management was not interested in joining this group of companies, two of which posted net loss in 2005. Nevertheless, we believe, that the Ministry of Industrial Policy, which now manages the state’s stake in the company, will continue pushing for this.