The stockholders' meeting of «Lozovsky Forging-Mechanical Plant» CJSC, the biggest Ukrainian forge 
and planting plant, supported the decision of merging with «Ukrpromreurs» Ltd.
The merging procedure will be performed by increasing the statutory fund of LKMZ issuing additional 
shares for the total UAH 22.6 million.
The founders of «Ukrpromreurs» Ltd. took a corresponding decision of merging with LKMZ.
At present the statutory fund of LKMZ totals UAH 231,200, while the statutory fund of «Ukrpromreurs» 
Ltd. is UAH 22.6 million.
At present LKMZ is renting a significant part of manufacturing and auxiliary premises at «Ukrpromreurs» 
Ltd.
The director of the Legal Department of the Ukrainian Industrial Power Company Yekaterina Knyazeva 
says, the object of concentration by affiliation of «Ukrpromreurs» to LKMZ is creation of a single property 
complex which will lead to the increase of the plant’s potential. The merging is expected to result in the 
growth of production volumes at LKMZ due to the formation of the balanced manufacturing facilities.
Since the statutory fund of LKMZ will increase as a result of merging, the plant will get extra potentialities 
to appeal investments and credit resources. Besides, the plant will have perspectives of lowering the cost 
price of the products and increasing profitability.
At present both enterprises have submitted application for the permission for concentration to the Antitrust 
Committee of Ukraine.
Note.
Close Corporation “LKMZ” (Kharkov region, Lozovaya town) – is one of the leading supplier of hot stampings, 
spare parts, units for different branches of national economy. Public corporation “UPEC” is one of the biggest 
share holders of Close corporation “LKMZ”, one of the biggest ruling companies in Ukraine, specialized in 
machine building business. “Kharkov tractor plant”, “Amkodor” (Minsk, Belarus), “Donetsk excavator” 
(Rostov-na-Dony, Russia), “Minsk motor plant” (Minsk, Belarus), “Minsk tractor plant” (Minsk, Belarus) and 
others – are the main users of LKMZ production.
The manufacture produces more than 60% of the products in Ukraine, such as driving axles for tractors, 
crankshaft blanks, axles for cargo and road building techniques.
JSC U.P.E.C it has been created in 1995. One of the largest management companies in Ukraine, specializing 
in machine-building business. UPEC is the large shareholder of some enterprises: Public corporation "Kharkov 
bearing plant", Public corporation "Kharkov electrotechnical factory "Ukrelectromash", Public corporation 
"Kharkov machine-tool plant by S.V.Kosiora ", Public corporation "Ukrainian foundry company ", "Lozovsky 
Forging-Mechanical Plant", and also Close corporation "Garment factory by Tinyakova" and "Factorial-bank". 
At the UPEC enterprises more than 10 thousand persons work, by the results of the year 2005 the total 
amount of the produced goods has exceeded 700 million uah. In 2006 UPEC enterprises are planing to 
produce goods for a sum of money more, than 800 million uah.