Lozovsky Forging-Mechanical Plant the biggest forging and hot stamping enterprise in Ukraine the member of the Industrial Group UPEC, increased the income but lowed the profit in 2006. By the results of the last year the pure income of the enterprise was 186,4mln.grn. It is in 14,3% bigger than in 2005. By the results of the 2006year the pure income of LKMZ was 3,2mln.gr. It is in 63% less than in 2005.

The part of export grew up to 34,7% of total volume of realization having increased in 1,7time as compared with 2005year. “The last year was difficult for LKMZ as the plant first was working under the conditions of bearing no interest of lowing orders from its former main customer “Kharkov Tractor Plant”. Exactly because of this the loss in 5mln.gr.was received in the first quarter of the last year. Nevertheless at the expense of mastering of new kinds of production (during the year more than70 new manufactured articles has been inculcated at the enterprise) and widening of the marketing the year was finished with the profit. We even overdone the plan in the pure income as we had the prognosis of annual growth in 10% to 180mln.gr.,” - said the President of UPEC Anatoliy Girshfeld. In such way the enterprise got the increase of sales in all principal kinds of production except axles for tractors. So in 2006 LKMZ produced stamping in 44%, axles for road-transport engineering in 61%, spare parts in 14% and other production in 32%more than in 2005;only the producing of tractor complements and axles for XTZ lowed (in 36%).

Last year LKMZ strengthened the former and develop the new connections with the biggest mechanical-engineering plants of UIS. Among its large customers – Cheliabinsk Road Construction Machine Plant, Vladimir Tractor Plant (Russia), Minsk Tractor Plant, Minsk Motor Plant, Gomselmash, the big producer of road engineering ”Amkdor” (Belarus), AvtoZAZ, Melitopol Motor Plant, Kharkov Tractor Plant (Ukraine) and others.

As A.Girshfeld informed all this enterprises have increased their orders in LKMZ in the current year. Confirmed contract bag for the current year gives reasons for the enterprise to get the pure income in 320mln.gr. More over the additional contracts in amount of 50mln.gr.are being working at. By the results of 2007year the part of export will make up more than 50% of all volume of realization. One of the principal tasks in the plan is mastering of new “line” production of cast axles for lift trucks weighting up to 5tones.

During 2007 the enterprise is about to strength the positions at the conveyers of agricultural and automobile engineering enterprises in UIS and bring the part of its presence in producing programs of leading plants up to 60%. Also by the end of 2007 LKMZ is going to start the delivery of details and assemblies at the conveyers of foreign companies.

note:

Close Corporation “Lozovsky Forging-Mechaniсal Plant” is the biggest forging and hot stamping enterprise in Ukraine and in UIS. The enterprise specializes in producing stamping of 300 different types. The producing capacity is to 180 thousand tones a year. As the plant is a multi-profile enterprise it is also the leader in producing axles for grain harvesters, road-building machines, axles for buses, the details for movable train set of cars.

“UPEC” is one of the biggest machine-building company in Ukraine. It was founded in 1995. The Industrial group UPEC includes three directions of activity:

the producing of components (“Kharkov Bearing Plant”(HARP),”Lozovsky Forging-Mechanical Plant”(LKMZ), “Ukrainian Foundry Company”(ULK);

electrical engineering (Kharkov Electrical Engineering Plant “Ukrelectromash”(HELZ);

machine-tool building (“Kharkov Kosior Machine-Building Plant”(Harverst)

The group UPEC also includes: ”Sewing Factory Named after Tinyakov”, ”Factorial-Bank”, and other enterprises.