It is reported that Stahanov Railcar Plant confirms the fulfilment of its output plan to the total amount of 2,000 railcars due to a stable restoration of previously attained levels of production as a result of re-establishing partnership relations with target clients and thanks to newly signed agreements with Russia and Kazakhstan.
As per report, thus according to the SVGZ management statement, the Company has signed a foreign contract to produce 1,000 railcars in H2 of 2009.
According to Millennium Capital analyst “We see this news as moderately positive for the Company. But we also have 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.” (Millennium Capital)
