OREANDA-NEWS. On 19 January 2009 Bogdan Corp. < LUAZ UZ BUY > reported production output growth in 2008. Bus and trolleybus output amounted to 3,780 units (16% growth y/y) and car output amounted to 88,316 cars (63.34% growth y/y). The company however noted production output fall in the last months of 2008.  In December 2008 car output dropped 18.4% y/y and bus and trolleybus output - 52.85% y/y.

We note that despite its business activity decreasing and a fall in the purchasing capacity of Ukrainians Bogdan nevertheless finished the year with positive results. We remember the previous plans to double output to 100,000 cars in 2008 and even in 3Q2008 these plans seemed real however after 3Q2008 results were published the first cracks in the plans were exposed and the 4Q2008 exposed a new reality. But anyway we consider that last year was successful for Bogdan Corp. The opening of a new car plant in Cherkassy (120,000 – 150,000 cars per year capacity), the launching of the second bus and trolleybus production line in Lutsk (the total capacity of the Corporation became 9,000 buses per year) and the consolidation of all production assets of the Corporation under the LUAZ umbrella confirmed our confidence.