OREANDA-NEWS  On 18 February 2009 was announced, that the AvtoKrAZ Holding  < KRAZ UZ UR >, the only heavy and special trucks producer in Ukraine, will reduce output by 17.4% y/y to 3,000 vehicles in 2009. This forecast was made by Igor Fomenko, the deputy general director in charge of foreign economic policy. Despite the weak manufacturing and sales results of the last several months, the company expects demand growth in second half of 2009 and production of 3,000 trucks in 2009 as a result. It also expects to receive money from the government for the products supplied in 2008.

This year, same as 2008 (the company reduced its output by 13.6% y/y), will also be difficult for KRAZ. Government ordered trucks for army, Emergency Ministry and Ukravtodor (the state road building company) again this year. In current economic environment we do not see this fact as undoubtedly positive for the company.

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