Kryukiv Wagon to start DMU train production in 2013

Kryukiv Wagon (KVBZ UK) will produce a prototype of a diesel multiple unit train (DMU) in 2013, Vladimir Prikhodko, chairman of the company’s supervisory board, said last Friday (via Interfax). Prikhodko said the train would require cooperation with an undisclosed major global producer. Overall, he said the company plans to triple its CapEx on passenger rail machinery development to USD 30 mln in 2013.

Roman Dmytrenko: In our view, Kryukiv’s plans to expand its passenger rail machinery division should have positive long-term implications for the company, as the CIS freight railcar market is already looking overheated, while mass renewal of passenger wagons and trains is only beginning. We also note that Luhanskteplovoz (LTPL UK), the current producer of  DMU’s for Ukrzaliznytsya, will likely give up this market to Kryukiv and concentrate on its core business – the production of diesel locomotives.