Luhanskteplovoz Tender Conditions Announced.
20 July 2008
The State Property Fund announced conditions for the planned October 3 tender of a 76% stake in Luhanskteplovoz (LTPL: HOLD), including an obligation to invest $59m in modernization within three years, to increase the company’s sales by 20% each year for the first three years after privatization, to satisfy the state railway’s demand for electric trains and spare parts, to launch production of new models of electric trains and electric locomotives, and to ensure exports of locomotives to the CIS and other countries. Olha Pankiv: The conditions are less strict than those initially announced by the SPF chairwoman. She had said there would be an obligation to increase output by 2.5 times within three years.
