In an interview with the newspaper Delo, Sumy Frunze (SMASH: BUY) First Deputy President Yegeniy Rogoviy said that after increasing production 25% in 2007, management is planning to boost it an additional 25% in 2008 to USD 400 mln. The management’s announcement makes our previous forecasts look conservative (20.1% growth in 2007 and 17.5% in 2008). Rogoviy also said that a zirconium pipe production plant on the territory of the company, according to their estimates, may be launched in three years. Without any details on the project, we do not account for it in our valuation, meaning that positive surprises may be on the way in terms of orders.