KAMAZ Plans Assembly Operations in Ukraine.

Russia’s largest truck maker KAMAZ has announced plans to start assembling its trucks in Ukraine. No details of the plan have been released. Currently small quantities of KAMAZ trucks are assembled at a Bogdan-owned company in Cherkasy. Ukraine accounts for 15% of KAMZ’s exports deliveries. The company also has assembly operations in Poland, Kazakhstan, Ethiopia, Azerbaijan and Vietnam. Olha Pankiv: KAMAZ intends to cut costs and increase sales of its trucks in Ukraine. The company’s plans pose a threat for AvtoKrAZ (KRAZ: HOLD), which has seen its domestic sales grow recently. However, the technical differences between the two companies’ products and KRAZ’s established presence, coupled with its developed system of service centers throughout the country, give it a leg up on its Russian peer.