Chervona Zirka To Invest USD 1.64 Mn In Capacity Increase & Improvement

Chervona Zirka, the largest producer of crop sowing equipment in the CIS, will finance its USD 1.64 mn CaEx program with its own cash flows. The company intends to increase its casting workshop capacity, renovate metal-cutting and forge-and-press equipment. Last year, Chervona Zirka’s CapEx reached USD 0.88 mn. Concorde Capital: The investment will support the company’s plans to increase output by 40% in 2005 to USD 64.5 mn. To increase sales, Chervona Zirka will increasingly target the Russian market. Last year, it opened warehouses in the Ural and Siberian regions of Russia. In 2004, Chervona Zirka also purchased the Belinskselmash plant in Russia, a producer of seeders. The Russian company complained that its products were uncompetitive with those made in Ukraine, due to higher metal prices in Russia. Metal constitutes up to 60% of Belinskeselmash?s costs. Chervona Zirka is 53.6% owned by Hidrokomplekt.