OREANDA-NEWS. On 03 February 2009 was announced, that Bogdan is building of new plant in Russia to avoid the impact of new Russian import duties on machine building products without opening the production in Russia. The duties put into the force on January 11. It means that Bogdan buses got 30% increase in price. Bogdan completes delivery according last year contracts and has no contracts for 2009. In 2008 Bogdan sold in Russia 971 buses with total amount USD 46.6mn. To keep this market Bogdan plans to launch SKD bus assembling in Russia already in July 2009.

Millennium Capital sees this news as negative for Bogdan Automobile Plant < LUAZ UZ BUY >. Bogdan postponed launch of second bus production line in Lutsk for May-June (it was planned on November 2008 but the crisis corrected the plans) and now the Company looses the Russian market for half of year and the part of profit in the future due to the fact that they will be selling not ready made products but only assembly parts. This news will be reflected on Millennium Capital valuations of the Company.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.