Azovmash announces investment plans and changes in shareholder structure

Azovmash Group plans to invest EUR 70 mln in 2012 into the construction of a press-forging plant for the production of railcar axles, Interfax reported on Friday, citing CEO Alexander Savchuk. Azovmash has its own castings facilities that supply controlled assets Azovzahalmash (UX: AZGM UK, N/R) and Mariupol Heavy Machinery (UX: MZVM UK, N/R). Savchuk said the company has settled USD 150 mln in debt since the beginning of the year (EBITDA/debt ratio was 1.4 in 1H11 vs. 2.0 in 1H10). Savchuk also confirmed a new large shareholder of the group – Yuriy Ivanyushchenko (one of the most influential members of the Party of Regions). Kommersant reported this morning that Avovmash’s ownership breakdown was as follows: Savchuk 25%, Ivanyushchenko 25% and the state 15%.