Bogdan Corporation Reshuffles Production Capacity

The Bogdan Corporation, automotive holding, will spend USD 265.1 mn to transfer its car and truck production facilities to Cherkasy, and begin bus production in Lutsk. The company announced plans to invest USD 195.3 mn in constructing a car plant and USD 24.5 mn in a truck plant in Cherkasy by 2008. Output is expected to reach 120,000 vehicles by the end of 2008. The company will assemble VAZ and Hyundai cars, and Isuzu trucks at the plants. Car assembly at its LuAZ plant will be halted. Bogdan will invest USD 45.3 mn in the plant’s re-equipment to start bus production there by 2008. Output is planned at 6K buses per year. Concorde Capital: Moving production from Lutsk might also be due to the government?s decision to cancel tax and import tariff privileges for LuAZ.