“AvtoKrAZ” Holding Company withstood recession in 2008

World financial crisis affected to some degree operation of “AvtoKrAZ” Holding Company. Production volume development for 10 months compared with the same period in 2007 amounts to 101%, though sales goal were not achieved in 2008. Production output decrease had taken place in November and December. As a consequence slowdown in the rates of production compared with 2007 makes up 13%. The crisis affected terms of execution of delivery contracts and for this reason performance of large part of them was postponed until the first quarter of 2009.

Within 2008 Kremenchhug automobile plant manufactured 3634 KrAZ trucks including CKD kits. The annual turnover amounts to UAH 1 milliard 24 mn.

The share of dump trucks in total yield amounts to 45%, the share of general purpose vehicles – to 38% and the share of truck-tractors – to 10%. The KrAZ-65055 is a very popular choice among construction and mining companies. Its share in total yield of the KrAZ dump trucks amounts to 66%.

In 2008 3254 vehicles equipped with engines meeting Euro-2 standards were assembled. Due to implementation of new emission standards since 2010 extensive work on adaptation of new home- and foreign-made engines meeting Euro-3 and Euro-4 standards for the KrAZ trucks is carried out by the company. A large scope of research and development works on upgrading of production and advance development vehicles was done. For the first time ever cab-over-engine dump truck with payload of 25 tons was created.

“AvtoKrAZ” Holding Company manufactured spare parts for the KrAZ trucks to the amount of UAH 46,8 mn (rate of growth compared with 2007 amounts to 111%). Demand for spare parts for the KrAZ trucks tends to steady growth in 2008.

The company maintained its positions in domestic and foreign markets: 1097 trucks were delivered to Ukraine, 1088 – to Russian Federation, 163 – to Turkmenistan, 113 – to Azerbaijan, 205 – to other CIS countries.

Last year “AvtoKrAZ” continued carrying-out of a program on consolidation of her presence in Africa and Latin America which allowed increasing scope of trucks to be delivered to Cuba up to 192, 101 truck were delivered to Nigeria, 25 – to Equatorial Guinea, 46 - to other countries of these continents. Export turnover amounts to $132 mn in 2008.

In 2008 “AvtoKrAZ” appropriated around UAH 50 mn for modernization of production.

Within financial year the company was deeply involved product quality problems. In 2008 the KrAZ trucks were provided with new upgraded driveline, engine support cushions, new model of solenoid valve, speedometer sensor and other groups and units which increase truck reliability.

The social sphere of “AvtoKrAZ” Holding Company is in progress. The volume of community investments in 2008 exceeded UAH 17 mn (20006 – UAH 11,4 mn, 2007 – UAH 14,8 mn). UAH 14 mn were spent for social problem solution. In 2008 the company provided charity support to public health service of Ukraine, she gave support to a number of projects for mother and child protection appropriating about $2 mn to this effect.

For the first time ever staffing level reached 95% of manning table in 2008. This level is the highest also among other mechanical-engineering enterprises of Kremenchug.

It points to a high level of confidence in the company, high staff morale, good working conditions, economic stability and company development.