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Dec 28, 2006
LKMZ unifies the prices for the road machinery axles.
 Lozova Forge Mechanical Plant, the biggest Ukrainian forging and molding enterprise, in the last quarter of 2006 raised the prices by 28% for the main purchaser of the road machinery axles — Byelorussian «Amkodor-Udarnik» JSC.
According to Anatoliy Girshfeld, the President of the UPEC Company (management company for LKMZ), such a position is associated with the advance of production costs caused by a rise in price of energy carriers, metal and salaries (due to the increase of rates). Besides, he noted, until lately «Amkodor-Udarnik», as the biggest purchaser of axles has been taking advantage of significant preferences, which under present conditions, as the costs increased, make the manufacture of these products economically inexpedient.
«Minsk plant has traditionally had significant preferences in view of the large volume of their orders. Increase of the demand for the axles from a number of Russian enterprises, whose part in the total purchase volume grows, requires price policy levelling», - A. Girshfeld said.
At present, LKMZ takes about 90% the CIS road machinery axles market. The specific weight of road machinery axles manufacture in the total manufacture volume of LKMZ is about 30%, i.e. about UAH 60 million, of which up to 70% are purchases made by Minsk plant.
At the same time, LKMZ expects the manufacture of machinery in the CIS to grow critically in the next two or three years, due to the development of the road system.
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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