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Dec 12, 2006
LKMZ is preparing for the critical growth of the demand for the road machinery.
 According to the forecasts of the UPEC company managing the biggest Ukrainian forging and molding enterprise - Lozova Forge Mechanical Plant, the demand for the road machinery in the CIS countries will double in the next two or three years.
Under such conditions, LKMZ is going to keep its status of the main manufacturer of road machinery axles, and thus is planning to start manufacturing a four-ton road machinery axle (an axle for loaders with the capacity up to 4.5 MT). This will be performed in close cooperation with the Ukrainian Foundry Company, also belonging to the sphere of management of UPEC.
At present, LKMZ produced mainly axles for the loaders with the capacity up to 3.5 MT.
"Due to the anticipated increase of the rate of growth of road building in the CIS countries, we are expecting a boom of road machinery manufacture in two or three years. Evidently, its volume will become twice as large, while for the last year it has been growing by average 10-15% a year. Today a number of Russian manufacturers, first of all, the largest of them "Amkador", as well as plants in Chelyabinsk, Rostov, Orel activate their manufacture significantly. Besides, the American company "Caterpillar" is building a road machinery plant in Russia. We are going to keep this market for us and remain the main supplier of the axles for this kind of machinery. For this purpose the plant is preparing for commercial manufacturing four-ton axles ", - Anatoliy Girshfeld, the President of the UPEC Company said.
At present, LKMZ takes about 90% the CIS road machinery axles market. "Amkador" is the biggest purchaser of these products. The specific weight of road machinery axles manufacture in the total manufacture volume of LKMZ is about 30% (about UAH 60 million).
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.
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