OREANDA-NEWS. November 13, 2009. Stahanov Railcar Plant < SVGZ UK U/R > confirms the fulfillment of its output plan to the  total amount of 2,000 railcars due to a stable restoration of previously attained levels of production (about 500 railcars per month) as a result of re-establishing partnership relations with target clients and thanks to newly signed agreements with Russia and Kazakhstan. Thus, according to the SVGZ management statement, the Company has signed a foreign contract to produce 1,000 railcars in 2H2009.

Millennium Capital sees this news as moderately positive for the Company. But Millennium Capital also has to emphasize that the SVGZ capacity is being used by a mere 25%, and the total price decline in the railcar market leads to a reduction in the net margins.