OREANDA-NEWS. March 1, 2011. Ferrexpo (LSE: FXPO LN) subsidiary Poltava Iron Ore (UX: PGOK UK) agreed to purchase 400 newly built gondola railcars with an option to purchase an additional 600 gondolas from Stakhaniv Wagon (UX: SVGZ UK), Ferrexpo announced in a release on Friday. The gondolas are to be delivered at a rate of 50 units per month, with the first deliveries expected in March. Stakhaniv Wagon is a related party to Ferrexpo as its beneficiary is CEO Konstantin Zhevago.

Concorde Capital: this order equals about 11% of our forecast for Stakhaniv’s output in 2011 and should not materially impact our models for Stakhaniv, even if it picks up the additional option, given that we expect full capacity utilization at the plant.