Dniprovahonmash plans to increase output by 35% y-o-y in 2011

Dniprovahonmash (UX: DNVM UZ), Ukraine’s fourth largest freight railcar producer, plans to increase output in 2011 by 35% y-o-y to 6.24 ths railcars, according to Interfax on Friday. Vitaly Gorovoy: Dniprovahonmash only supplied railcars to Russia in 2010 and we are not expecting any changes in its client structure in 2011. We note Dniprovahonmash’s capacity utilization in 2010 was 93%, which delivered historically high output volumes, which implies the company might need to launch additional shifts to meet its targets. Dniprovahonmash is outside of our formal coverage universe due to low liquidity (it is only traded on the PFTS).