Bogdan Corporation To Invest USD 51 mln in Bus Production

Bogdan Corporation reported it would invest UAH 255 mln (USD 51 mln) in development of its bus plants in Cherkasy and Lutsk, aka the Bohdan Automobile Plant (LUAZ: N/R). Inna Perepelytsya: The investment will be directed at increasing output and adding to its bus family, and is part of a larger USD 350 mln CapEx program through 2010. To date, Bohdan has already invested USD 36.8 mln of this amount on bus production. The company aims to capture 40% of domestic market vs. its current market share of 26%. The investments strengthen the integration of Bohdan’s Cherkasy Bus and the Bohdan Automobile Plant, which management is looking to consolidate ahead of an IPO in the mid-term.