Stakhanov Wagon Works To Invest USD 52 mln In Modernization

The railcar building arm for the AvtoKrAZ Group (KRAZ: HOLD), Stakhavov Wagon Works (SVGZ: BUY), has announced plans to invest over USD 52 mln to upgrade the company’s production facilities over the next three years. According to the company, the upgrades will allow it to increase railcar output to 10 ths carriages per year, and begin serial production of new boxcar models. Inna Perepelytsya: It looks like Stakhaniv Wagon has reconsidered its production plans for railcars. In our opinion, part of planned CapEx will be spent for the development of alternative products such as metal construction, as the company plans increase the share of revenues from metal construction from 5% in 2006 to 50% in the mid-term.