According to the press service of Stakhaniv Railcar Plant, the plant increased its freight railcar output to 3,380 units up by 10% YoY in H1 2008. This helped SVGZ to be ranked the 3rd largest railcar manufacturer in Ukraine and the 5th in the CIS.

Over the period SVGZ increased the output of gondola cars to 2,546 up by 138.7% YoY and climbed to 2nd position in the CIS league table of the largest manufacturers of this highly desired type of freight car. The press service also announced that the company is considering offers from leading EU railcar manufacturers to work together.

Millenniun Capital analyst said that “The news is positive for SVGZ. Based on the H1 2008 production volumes we see that the company's earlier plans to increase the output of freight railcars to 6,600 up by 19% YoY are quite realistic. Moreover, the growing share of gondola cars to 76% currently in the plant’s output promises increased top and bottom lines. We believe that building a reputation as a leading gondola car manufacturer in the CIS and possible partnerships with the leading railcar manufacturers of the EU will add some value to SVGZ’s stock. We look positively at the stock and recommend accumulating it.”

(Sourced from Millennium Capital)