LUAZ To Increase Car Output By 29% to 39.6 ths In 2006 And Start Bus Production.

In 2005 Lutsk Automobile (LUAZ) increased production by 39% to 30.7 ths automobiles. In addition, the company plans to launch a bus production line this year, and will make 1,700 large and extra-large buses. Currently Cherkasy bus, a member of the Bogdan Corporation, which also includes LuAZ, is the only major producer of buses in the corporation. Bogdan has announced plans to transfer the production of buses to LuAZ, which will have a capacity of 6 ths buses by 2008, and construct car production capacities in Cherkasy. In December Bogdan announced plans to increase bus production by 23.4% to 2,500 in 2006. Last year Bogdan’s bus production grew by 78.9% to 2007 units. Concorde Capital: LuAZ has already started raising funds for its capacity expansion, the company sold 8% of its shares to foreign investors for USD 16 mln (estimated P/S 1.0, P/EBITDA 6.2, P/E 6.7).