Azovmash management disclosed production plans for June, and said that the holding plans to increase its monthly railcar output by 20.6% compared with May and by 27.5% compared with its average monthly output in 2008. Innovations in the holding’s production procedures caused output growth to slow in previous months. The company plans to increase its monthly output of all major products, including gondola cars, flatcars, box cars, tank cars, and metallurgical equipment.
We see the news as POSITIVE for the company. There is a high demand for railcars on the CIS market, and Ukrainian railcar manufacturers are responding by fully loading their existing capacities and reformatting operating procedures to improve productivity. We expect production figures for June to be announced early next week.

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