12 December 2011
Kryukiv Wagon (KVBZ UK) decreased freight railcar output 73% mom to 280 units in November, the company said on Friday. In 11M11, output grew 15% yoy to 9,612 units. Roman Dmytrenko: Kryukiv Wagon was forced to halt work on its Russian contracts last month due to a shortage of certified casting as Russian authorities suspended the quality certificate from Kryukiv Wagon’s main supplier, Kremenchuk Casting, in late September. As the certificate was reinstated in early December, we expect Kryukiv to return to monthly production of over 1,000 freight railcars already this month. This is the first time Kryukiv Wagon has had such issues with its casting supplier. We hope the matter is a one-off and forecast the company to produce 10,700 freight cars in 2011 (+17% yoy) and 9,500 passenger cars in 2012 (-11% yoy).