OREANDA-NEWS. November 28, 2012. Mining Machines has posted a revenue of UAH 2bn and EBITDA of UAH 229m for nine months 2012, showing a 6% increase year on year. Income from aftersales services and repairs has grown 261%.

Domestic market accounts for 84% of the revenue. Sales to foreign partners increased 68% year on year, reaching UAH 315m. Key international sales markets include Russia, Kazakhstan, Belarus and Vietnam. Mining Machines operates trading companies in the first two countries and rolls out a large-scale construction of mine shafts for VINACOMIN, Vietnam.

The company’s five-year business strategy focuses on development of aftersales services and launch of maintenance facilities for shearers, headers and powered supports, generating UAH 130m (+261% year on year).

Mining Machines’ investment programme targets to establish maintenance facilities, develop and upgrade production facilities and acquire control and measuring equipment to ensure high standards of products. Investment exceeds UAH 68m.

Records, bonds and new businesses. Mining Machines’ landmarks in H2 2012.

July. A new service. The company opens a maintenance facility for headers and shearers in Gorlovka town. It can overhaul up to 70 machines annually.

August. Time of records. Mining Machines’ header made Ukraine’s record in Yuzhnodonbasskoye 1 Mining Group, making a 561-metre mine tunnel over a month. One year ago the header broke Ukraine’s 10-year record.

September. Business and science. Mining Machines and Belarus-based Belgorkhimprom R&D Centre sign a cooperation agreement for development, production and delivery of mining companies.

September. New service No. 2. The company opens a maintenance facility for powered supports in Kamensk-Shakhtinskiy, Rostov Oblast, Russia. The move helps miners from the region to get the equipment overhauled over a short period.

October. An investment indicator. Druzhkovka Heavy Engineering Plant is assigned an uaAA- credit rating with a stable outlook.

October. Mining Machines manufactures ahead of time a main fan and axial fan ordered by Norilsk Nickel. The cost of supplied equipment exceeds USD 1.5m.

November. Debut bond issue. Druzhkovka Heavy Engineering Plant issues debut bonds of UAH 250m, with a maturity of three years and interest of 18% per annum.

Mining Machines is a large Ukrainian producer of mining equipment. It belongs to the diversified business group System Capital Management (SCM). The Group designs, produces, delivers and maintains equipment and machinery for the mining industry.

In 2011, the company’s revenue made USD 225m (a 31% increase year on year), net income made USD 19.4m (a 44% yare on year) and production output grew by 94%.

Mining Machines Group includes Druzhkovka Heavy Engineering Plant, Gorlovskiy Mashinostroitel Engineering Plant, Donetskiy Energozavod Engineering Plant, Donetskgormash Engineering Plant, Krivoy Rog Mining Equipment Plant, Kamensk Heavy Engineering Plant, Mining Machines Engineering and Technical Centre, Mining Machines-Quality System, Mining Machines service company and Mining Machines Rus.