It is reported that the output of Luganskteplovoz, monopoly producer of trunk-railway diesel locomotives grew in October by 31% MoM compared with September to USD 27 million. For the 10 months of 2008 output increased by approximately 2.4 times to USD 172 million.

The main reasons which are keeping a check on the enterprises activity are supplier's problems due to a lack of financing. Decreasing orders from Ukrzaliznytsa has become a bad tradition. This year, the volume of orders from Ukrzaliznytsa is about four times less than in 2007.

According to Millennium capital analyst “The purchase of LTPL by Russian Transmashholding was a positive event. The enterprise shows robust growth which is supported through the mother company by orders from Russian railways. We see this news as positive, because it confirms that railway machine building is still one of the engineering branches with good potential for growth.”

(Sourced from Millennium capital)