Stakhanov Railcar decreases output, cuts workforce costs
22 October 2013
Freight railcar producer Stakhanov Railcar (SVGZ UK) is going to temporarily lay off a third of its workers (about 1,500) owing to a tough environment on the CIS railcar market, the Interfax news agency reported on October 21, citing the company’s board chairman Eduard Miserva. Railcar production dropped 38% yoy in 9M13, according to the source. The company expects demand for railcars will eventually recover in the CIS and the company will be able to restore its production.
Alexander Paraschiy: The provided statistics suggest Stakhanov produced 2,490 railcars in 9M13, which implies its output fell 57% yoy to 571 railcars in 3Q13 – a significant deterioration after just a 28% yoy fall in 1H13. Most likely, the last quarter of 2013 will be even harder for Stakhanov, as well as for other Ukrainian freight railcar producers, and the company will produce about 3,000 railcars in 2013, 41% below plan and its result from the previous year (5,060 units).
