Sumy Frunze wins USD 60 mln order from Gazprom
6 June 2008
Sumy Frunze (SMASH: BUY) won a USD 60 mln order from Gazprom to supply it with equipment until July 2008, Kommersant-Ukraine said yesterday. According to the daily’s source in Gazcomplectimpex, Gazprom’s equipment procurement subsidiary, Sumy Frunze’s competitors were Russian Saturn and American General Electric, which lost out due to lower equipment quality and a higher price, respectively. In the related news, Gazprom said it could increase its annual orders to Ukrainian machine builders from USD 180-200 mln currently to USD 600 mln. Inna Perepelytsya: Sumy Frunze’s win versus a well-known global giant like General Electric highlights its competitive advantages on CIS markets. Securing more orders from Gazprom sets a strong foundation for the company to increase sales this year, making management’s plans to boost revenues by 81% yoy in 2008 (and to USD 1 bln by 2010-2012), announced at the company’s April 21 AGM, look feasible.
