Bogdan Motors signs partnership with MAN, to supply 500 buses for Euro-2012

Bogdan Motors (UX: LUAZ UK) yesterday signed a memorandum with the Cabinet of Ministers of Ukraine to supply 400 tour buses and 100 airport buses for the UEFA European Football Championships, which is to be co-hosted by Ukraine and Poland, in 2012. Production will be able to start thanks to partnership agreements with MAN and Viseon Bus, which were announced yesterday. The latter two partners will supply kit cars, while Bogdan Motors will make the body of the bus and assemble the vehicles at its Lutsk plant. The order is to be completed by April 2012, after which Bogdan Motors is planning to start exporting tour and airport buses to CIS countries. Yegor Samusenko: We estimate the value of order to be in the USD 130-150 mln range, which comprises 65%-75% of Bogdan Motors’ 2010E annual production. This, together with the recent addition of Hyundai’s import business, should boost Bogdan Motors’ top line to USD 500 mln in 2011E from USD 200 mln in 2010E.