Kryukiv Wagon to make 10,750 freight railcars in 2012
16 January 2012
Kryukiv Wagon (KVBZ UK) plans to produce 10,750 freight railcars in 2012, the same number it made in 2011, the company’s chairman of the board said on Friday. The company reportedly has a full freight railcar order book this year and has yet to settle on a plan for passenger railcar production.
Roman Dmytrenko: The announcement that Kryukiv has already filled its order book confirms strong demand for freight railcars in the CIS. Casting supplies will remain an issue due to the company’s dependence on a single casting supplier, Kremenchuk Casting. We see a high risk the company will miss its production target by ~10%. Kryukiv Wagon missed its 2011 production target by 7%, which we believe illustrates its vulnerability to supply shocks.
