KrAZ Industry Holding To Be Formed By The End Of 1H06.
8 February 2008
The holding will include AvtoKrAZ, Stakhanovsky Carriage Building, Kerchensky Ship Building Zaliv, Kyiv Ship Building and Repair, Berdychiv Progress (filters and drying equipment for chemical, steel and mining industries) and Uzhgorodsky Turbogaz (natural gas-related equipment). Finance & Credit group, which is consolidating these companies, announced that it planned to hold an IPO tender for the holding abroad. The company is currently negotiating with Merill Lynch, Morgan Stanley and Citibank. The combined sales of the companies in the holding reached USD 217 mln in 2005. In 2006 the management plans to raise the holding’s sales to USD 470 mln, and reach USD 1 bln by 2008. The largest growth is planned at Stakhanovsky Carriage Building, where sales are projected to triple in 2006 to reach USD 150 mln. Concorde Capital: The plans to increase sales at Stakhanivsky are based on the strong demand for freight railway carriages posted by Ukrainian and Russian carriers Ukrzalianytsya and Russian railways.
