AvtoKrAZ launches steel casting plant

AvtoKrAZ (KRAZ) put into operation a steel casting facility as of September 7, Ukrainian News reported yesterday. The facility will have a production capacity of 15 ths mt of casting p.a. The company plans to use the products for the manufacturing of automobiles, railcars and parts. Yegor Samusenko: AvtoKrAZ’ steel casting facility could be used to increase the value chain of wagon assembly at Stakhaniv Wagon (SVGZ). Both AvtoKrAZ and Stakhankiv Wagon are controlled by Finance &C redit group. Though, there is no significant short-term effect of the new business line due to the slump in demand both for AvtoKrAZ automobiles and wagons. We see the news positive for KRAZ and SVGZ stocks.