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Kryukiv Railcar announces entry into Russian market via joint venture
Крюковский вагоностроительный завод (KVBZ)
Kryukiv Railcar (KVBZ UK) signed a memorandum to establish a joint venture with Russian Kirovskiy Zavod (KIRZ RU), the Russian firm reported in a press release on July 3. The JV will produce passenger railcars, subway cars, trams and escalators at the Kirovskiy Zavod plant in St. Petersburg. Initial investments are estimated at RUR 120 mln in 2013 and RUR 750 mln in 2014-15. Both partners will hold an equal stake in the JV, which is expected to commence production in December 2013 with an annual nominal capacity of 100 subway cars and 50 passenger railcars.
Roman Dmytrenko: Unable to export its passenger railcars to Russia due to protectionist measures, Kryukiv seems to have found an indirect way of entering the Russian market. Nevertheless, we believe it’s too early for the company’s investors to cheer as all the railcar models to be produced by the JV will have to undergo mandatory certification by Russian authorities prior to the start of production. Considering the certification issues in Russia that periodically arise with Ukrainian-made freight railcars, gaining certification will most likely remain a challenge for Kryukiv Railcar, even with a local partner.
Источник: Конкорд Капитал
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