Bogdan halts plans to build factory in Nizhny Novgorod

Bogdan Automobile Plant (LUAZ) representative Sergey Krasulya, said in an interview with Kommersant, that Bogdan has halted plans to build a automobile manufacturing plant in Nizhny Novgorod (Russia). Sources cited by Kommersant said they did not exclude a scenario under which Bogdan sells its 50 ha land plot in Nizhny Novgorod. Krasulya said Bogdan is focusing on the development of existing production facilities and has frozen new investment projects in Ukraine, Russia and Belarus in connection with the global economic crisis. Yegor Samusenko: The company produced 7.7 ths cars in 1H09, down 82% yoy. Curtailing all new investment projects was expected for the company, since its growth perspectives have shrunk and company has heavy debts (net debt of USD 269 mln as of end-June).