OREANDA-NEWS. October 05, 2010. Ukrzaliznytsia, the state-owned rail transportation monopolist, intends to buy 50,000 freight cars from 2011 through 2015, the company official representative announced on Oct 4. It was also reported that the company needs nearly UAH 27bln to invest in the renewal of the car fleet estimated in the current prices.

Millennium Capital: this news is positive for Ukrainian railcar producers. In early July, Ukrzaliznytsia announced its intention to lift the purchases of freight cars from 2,200 to 6,000 cars per annum in 2011 according to its strategic development plan. Now the number seems to have risen even higher to nearly 8,000 cars annually. We see a firm growth potential for SVGZ, KVBZ, MZVM, and AZGM from the implementation of the plan as this is to bring them additional revenues of USD 100mn p.a.