Bogdan Corporation completes construction of plant in Cherkasy

Bogdan Corporation announced yesterday that on September 9 it completed construction an automobile manufacturing plant in Cherkasy, with a capacity of 15 ths units p.a. According to Oleh Svinarchuk, Bogdan Corporation president, the new plant is expected to produce ~2 ths trucks din 2008, 3.5 ths trucks in 2009, and reach estimated capacity by 2012. The plant is among the five Bogdan Corporation assets planned to be exchanged for Bogdan Automobile Plant’s (LUAZ: BUY) shares during the company’s upcoming additional share issue (see our share issue alert of August 29). The plant is currently owned by Bogdan Special Vehicles, which released IFRS accounts in 2007, recording sales of EUR 10.5 mln (+35% yoy) and EBIT of EUR 0.2 mln.