Stakhanov Wagon Works To Deliver 20 Carriages To Russia's Novolipetsk Metal

Stakhanov Wagon Works (SVGZ: BUY), part of KrAZ Holding, has agreed to deliver 20 heavy-duty hopper carriages to Russia’s Novolipetsk Metal Factory in November. The terms of the deal were not discloses. Olha Pankiv: SVGZ’s 6M output of 854 carriages was up 206% yoy, 40% of our projected output for the company in 2006. It looks like we are at the beginning of a boom in orders from Russia. Russian producers are unable to meet the country’s growing demand for new rolling stock (over 125 ths Russian carriages are being past their expected life spans) and the Russian government has announced plans to spend USD 26 bln to upgrade its railways by 2010.