Azovmash Increases Production by 6% in 11M

Azovmash, managing company for Mariupol Heavy Machinery (MZVM: BUY) and  Azovzahalmash (AZGM: HOLD)  announced yesterday its 11M06 production increased by 6%, with its carriage-building segment growing by 4.7% to USD 2.3 mln. Olha Pankiv: Taking into account intra-group sales, we expect MZVM and AZGM to post 14% and 18% growth in sales respectively in 2006. The most significant change in the companies’ product mix – from gondola cars to tank-cars this year (production of the latter grew by 40.7% yoy in 11M06 to 5,167 units) will secure the company from a potential loss in orders for gondola carriages from Ukrzaliznytsya, which announced plans yesterday to produce gondola carriages for its own needs at state-owned Darnytsky and Popasnyansky carriage-building plants.