OREANDA-NEWS. September 6, 2010. Ukrzaliznytsia, the state rail transport monopoly, plans to buy 16 new locomotives by the end of 2010, the government representative announced Aug 3. Ukrzaliznytsia is going to increase the purchaces of new locomotives up to 50 units over several subsequent years. The Company also plans to announce tenders for modernization of old locomotives before the year end.

Millennium Capital considers the news as positive for Luganskteplovoz (LTPL UK), the major producer of mainline locomotives in Ukraine. Previously, Ukrazaliznytsia planned to order nine locomotives, two electric trains, and three diesel multiple-unit trains from LTPL. The orders will be crucial for the producer in case Transmashholding (Russia) terminates the contract for the acquisition of the 76% stake in Luganskteplovoz.